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Latest NewsPay & benefitsPensions

CBI identifies compulsion for small firms as drawback of Turner’s pensions report

by Mike Berry 30 Nov 2005
by Mike Berry 30 Nov 2005

The CBI has welcomed publication of the Turner Commission’s report on pensions, but warned that compulsion could be the sting in the tail that threatens small firms’ support for pensions reform.

Commenting on the publication of the Turner report, CBI director-general, Sir Digby Jones said: “The Turner report offers the most serious proposals for pensions reform yet. But that deal cannot come at the expense of jobs and competitiveness among Britain’s small firms.

“Compulsory employer contributions may well not impact on large employers, who are already contributing generously to their employees’ pensions, whatever their type.

“But make no mistake, compulsion would be a step too far for smaller firms, who simply cannot afford such a hike in the cost of employment.”

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Jones said despite these reservations, the UK needs a grown-up debate on how to take forward these proposals.

He said the CBI is willing to play its part and will be consulting its members on the detail of the report.

CBI
Mike Berry

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