Bosses failing to set an example on pensions

Bosses
at UK companies are enjoying pensions worth up to 50 times more than most staff
pensions despite being called on to ‘set an example’ by the CBI, according to
TUC research.

The
PensionsWatch report claims
the directors of the UK’s
top companies share defined benefit (DB), or final salary, pensions schemes worth £750m.

The
average director’s pension would pay out £169,000 a year if they claimed it now
– more than 26 times the national average, the research shows.

For
the directors with the biggest pension at each company the average is £303,000
a year, nearly 50 times the average for all employees.

The
report also says that more than 80 per cent of the directors in the study have
DB pensions, but only 40 per cent of companies still have a DB scheme open to
new employees.

Brendan
Barber, TUC general secretary, said: "Employees in every sector have seen
their pensions under attack in recent years, but few of those making the
decisions show any willingness to sacrifice their own pensions.

“Fat
cats are still supping the pensions
cream, and have taken little or no notice of business leaders or ministers who
say they should set an example," he said.

Michael Millar 

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