The Government should restore Advance Corporation Tax credits for
occupational pensions if it wants to stop an increasing number of employers
axing such schemes, claimed general secretary of union Amicus, Sir Ken Jackson
Jackson said the removal of ACT for pensions five years ago plunged many
schemes into financial difficulties and contributed to problems that many
employers are now facing over promised pension payments.
"The removal of up to 20 per cent of dividend returns forced schemes to
revalue. If we are to emerge from this immediate crisis we must see the
treasury restore ACT credits to occupational schemes.
"The state system is already beleaguered. The last thing it needs is
large numbers of former occupational scheme members seeking a share of the pot
at retirement," he said.
Jackson joined the TUC and Unison in calling for employers to be enforced to
make contributions to their staff pension schemes.
"If employers save on the costs incurred by final salary pension
schemes they should be more than able to cope with significant levels of
contributions to members’ accounts," he said.
"If employers want money-purchase schemes they should be able to have
them but at the price of contributions at a significant minimum level."