Employers
are demanding a radical pensions overhaul from the government Green Paper out
next week (17 December).
The
Employers’ Forum on Age (EFA) is calling for recognition that employment and
retirement patterns are changing by breaking the link between length of service
and pensions. It seeks to encourage gradual retirement as a retention tool for
older employees.
The
EFA wants the Inland Revenue to increase pensions tax relief and abolish
contribution limits to make pensions a more attractive savings vehicle.
It
is also seeking a centralised pensions body to give employees an annual benefit
statement so that staff are more aware of their likely retirement income.
Sam
Mercer, campaigns director at the EFA, wants revenue rules changed, including
those that prevent staff from accessing their pension and salary at the same
time, and that reduce flexibility on occupational pensions.
Karen
Beech, EFA member and head of group HR services at Bupa, said: "Current IR
rules on occupational pensions prevent Bupa staff working flexibly and make it
difficult to retain skilled and valued older employees."
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Geof
Pearsons, pensions manager at Sainbury’s, said future pension provision
"should allow for starting another job, for those who either do not want
to retire or who cannot afford to do so."
