Unions urge employers to match contributions

first_imgRelated posts:No related photos. The TUC and Unison have urged the Government to introduce legislationforcing employers to match staff contributions to pension schemes. A TUC analysis of government figures show there are at least 1.8m fewer employeesin final salary pension schemes than a decade ago. It estimates only 200,000 of these employees are likely to have transferredto personal pension-style money-purchase schemes, leaving 1.6m without any formof occupational pension. TUC general secretary John Monks said there may be even more people withoutan occupational pension as many firms have closed schemes recently. He called for the Government to implement a statutory obligation foremployers to contribute to employees’ pensions. He said: “Over the past decade employers and the state have beenshifting responsibility for pensions prevision on to individual employees. Manyof these have no idea how poor they will be when they retire or simply do nothave the spare cash to make up savings needed to build up a sufficient pensionof their own. “That is why employers must be made to contribute to schemes.” Unison wants employers to match staff contributions at least – with theminimum amount being 6 per cent. It is also calling for employer pensionschemes to allow staff involvement in decisions and investment. Unison general secretary Dave Prentis said: “Pensions policy is intotal disarray. Companies are backing out of their obligations with impunity.That cannot be allowed to happen. The Government should act as a matter ofurgency and legislate to stop companies raiding pension funds by unilaterallychanging the rules and reducing employee benefits. “The Government says stakeholder and money-purchasing pension schemesare the way forward. Yet with breathtaking hypocrisy, MPs vote themselves oneof the best defined benefit schemes in the country.” By Quentin Reade Unions urge employers to match contributionsOn 5 Mar 2002 in Personnel Today Previous Article Next Article Comments are closed. last_img

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