Following news that Aon is to cut its contributions to members' pensions by up to half, Aviva has revealed in its annual report that their defined contribution (DC) pension offerings will no longer be free to members.

The 15,900 members of Aviva's DC pension scheme will from July 2009 be required to pay at least one per cent of their salary into their plan, rising to two per cent from April 2010. However, Aviva has pledged to increase its maximum employer contribution to the schemes from 12 per cent to 14 per cent. Members who contribute the maximum eight per cent of salary will benefit from this 14 per cent employer contribution, placing a total of 22 per cent in their pension pots.

In news that has been reported across the financial and national press, it is understood that Aviva's defined benefit (DB) contributions will also be increased.

A spokesperson for Aviva told Pensions Age that some of the reports in the national press were incorrect in saying that the changes will apply across the group. He said that, in fact, these new terms will only apply to UK members.

He said: "We want to make sure that all staff pension schemes remain not just adequate but attractive, because we believe we have a responsibility of encouraging pension saving amongst staff; this is why we are doing this."

- Pensions Age April 2009

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