Irish employers contribute around €1.5 billion in pension payments every year but need to work harder at making their staff aware of the benefit, according to a new study by PricewaterhouseCoopers (PwC).

The survey of 290 Irish companies, which between them employ more than 200,000 people, found that those companies more effective in communicating the benefits of pensions performed better in motivating and retaining staff.

As Irish-managed pension funds nurse losses of 5 per cent so far this year, according to benefits consultants Mercer, investment underperformance is unsurprisingly the major concern of employers, according to the study.

However, they are also worried about pension regulation, inadequate pensions and longevity.

Among executives, 40 per cent of respondents said that pensions had become a more significant issue in remuneration in recent years.

The study found that people in 8 per cent of respondents companies had been affected by the €5 million cap on pension funds imposed by Minister for Finance Brian Cowen.

Where employers offer access to personal retirement savings accounts (PRSAs) instead of an occupational scheme, more than one-third of employers (37 per cent) make no contribution to such schemes.

Just over half the companies included in the survey are Irish. Only 30 per cent offered defined benefit arrangements - where the pension is determined by years of service.

The balance rely on defined contribution arrangements - where the pension is determined by contributions and investment performance - although 3 per cent offer hybrid schemes and 9 per cent operate via PRSAs.