CBI warning over pension protection proposals

The
CBI has expressed concern that government proposals announced today for
increasing pensions protection will add to business costs.

Work
and pensions secretary Andrew Smith revealed the Government is to set up a
compulsory insurance scheme to ensure workers did not lose their pension if
their employer became insolvent.

However,
the CBI warned that making pension schemes too costly could do "more harm
than good".

John
Cridland, CBI deputy director-general, said: "Insurance could be one
solution but the cost of providing occupational schemes has shot up hugely and
anything that added to that could be extremely damaging.                                  

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"We
will examine any proposals with an open mind but if we make pension schemes too
costly, employers will not be able to provide them", he said.

By Michael Millar