The
Government should restore advance corporation tax credits for occupational
pensions if it wants to stop more employers axing such schemes says the general
secretary of Amicus.
Sir
Ken Jackson claimed the removal of ACT for pensions five years ago plunged many
schemes into financial difficulties which contributed to problems many
employers are facing over their pensions.
"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 tax credit to occupational schemes.
"Without
it the Government will undermine its own laudable aim of increasing the numbers
of those able to provide for their retirement. The state system is already
beleaguered. The last thing it needs is large numbers of former occupational
scheme members coming to it for a share of the pot at retirement."
Jackson
joined the TUC and Unison in calling for employers to be enforced to make
contributions to their employees’ pension schemes.
"If
employers save on 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."
