Variables that impact on voluntary pension contributions: a case study

Abstract

This paper reports on qualitative research based on 24 semi-structured interviews, using a stratified sample with employees in a single case study setting. The employing organisation is Medtronic, a US-based multinational in the medical devices industry with an Irish subsidiary located in Galway. With both one-way and two-way communication media, employees are regularly informed about their defined benefit (DB) pension scheme and the opportunity to increase their pension savings through an Additional Voluntary Contribution (AVC). In spite of this, research conducted in 2009 found that only 18% of employees are contributing to their AVC (Maloney and Morris, 2010). This research is attempting to identify the workplace variables that are influencing employees in their choice to invest or not invest in the AVC.