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Personnel Today

Call for compulsory pensions contributions

by Personnel Today 3 Sep 2002
by Personnel Today 3 Sep 2002

The
TUC has called for compulsory employer pension contributions following the
publication of research showing that many workers, particularly the unskilled,
have inadequate pensions provision.

The
TUC report finds that skilled workers are much more likely to have a company
pension than unskilled staff.

According
to the study, three-quarters of professional men are members of occupational
pension schemes, compared to only a third of unskilled men.

Seven
out of 10 skilled women have an occupational pension, compared to 27 per cent
of unskilled women. And eight out of 10 London staff have an occupational
pension – with less than 75 per cent in other regions.

TUC
deputy general secretary Brendan Barber said the findings show that employers
should be forced to make contributions to occupational pension schemes.

 "Hardworking people deserve decent
retirement incomes, but at the moment, pension coverage is patchy. It is
crucial we have a strong safety net for those who are left without coverage,
but in the end, we all need to pay up for pensions," he said.

"We
want to see compulsory employer contributions and action to stem the tide of
final salary scheme closures."

Barber
added that compulsory employer contributions would also make stakeholder
schemes more attractive to the people most likely to be without adequate
pension cover.

www.tuc.org.uk

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