Government is to consider union demands to stop companies ending or diluting
to the FT, The Treasury is to meet with the TUC, which is pushing for a change
to prevent employers stopping or freezing final salary pension schemes.
TUC’s concern stems from the growing number of companies making the switch to
less costly, combined-contribution pensions.
TUC said it is worried the move away from traditional schemes places too much
responsibility on employees.
recent KPMG report found that employees with the now-favoured
defined-contribution plans need to contribute significantly more to get the
same pension they would from a final salary package. The report found many
employees were unaware of the differences between the schemes.