12/09/2005
TUC seeks 'compulsory' pension contributions
The TUC is to outline a blueprint for the future of pensions at the annual Congress being held this week in a proposal that will place an obligation on both employers and employees to contribute to a pension.
In addition, the TUC will call for an enhanced and indexed state pension to give everyone a firm foundation on which to build a second pension. This must give a fair deal to those - particularly women, carers and the very low paid - who miss out on current state pension arrangements, and greatly reduce the need for means testing.
The union body says that a revitalised state second pension should be shaped so that it particularly helps the low-paid build up an additional pension.
Calling for employers and employees to be compelled to contribute to a second pension either as part of the state second pension, an existing or new occupational pension or other arrangement, the TUC says that 15% of pay is required to build up a decent pension, that employers should contribute 10% and most employees should contribute 5%.
Launching the report at a press conference on the eve of the TUC's Brighton Congress, TUC General Secretary Brendan Barber said: "Credit is due to ministers for recognising our pensions problems and setting up the Pensions Commission, whose chair Adair Turner we will welcome on Wednesday. But only radical solutions can work, and ministers must start preparing the ground now for the big changes that are required.
"In particular they are going to have to take on the bulk of the employer lobby, and tell them that they cannot continue to walk away from their responsibility to contribute to pensions. Voluntarism - or even expensive incentives will not work - compulsion must be introduced."
The report recognises that this is a significant change and says that, as in Australia, the new contributions should be phased in.
The union says that pensions policy is too long term to be left to politicians alone and that a permanent Pensions Commission should be set up to run the system.
(SP/MB)
In addition, the TUC will call for an enhanced and indexed state pension to give everyone a firm foundation on which to build a second pension. This must give a fair deal to those - particularly women, carers and the very low paid - who miss out on current state pension arrangements, and greatly reduce the need for means testing.
The union body says that a revitalised state second pension should be shaped so that it particularly helps the low-paid build up an additional pension.
Calling for employers and employees to be compelled to contribute to a second pension either as part of the state second pension, an existing or new occupational pension or other arrangement, the TUC says that 15% of pay is required to build up a decent pension, that employers should contribute 10% and most employees should contribute 5%.
Launching the report at a press conference on the eve of the TUC's Brighton Congress, TUC General Secretary Brendan Barber said: "Credit is due to ministers for recognising our pensions problems and setting up the Pensions Commission, whose chair Adair Turner we will welcome on Wednesday. But only radical solutions can work, and ministers must start preparing the ground now for the big changes that are required.
"In particular they are going to have to take on the bulk of the employer lobby, and tell them that they cannot continue to walk away from their responsibility to contribute to pensions. Voluntarism - or even expensive incentives will not work - compulsion must be introduced."
The report recognises that this is a significant change and says that, as in Australia, the new contributions should be phased in.
The union says that pensions policy is too long term to be left to politicians alone and that a permanent Pensions Commission should be set up to run the system.
(SP/MB)
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Pensions coalition calls for ‘fair deal’
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Radical Pension Changes To Affect Local Businesses
Private sector employers need to take action now to prepare for a significant overhaul of employee pension provision or face playing catch up on one of the biggest issues to impact the business community for decades, according to a leading UK pension’s expert.
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28 July 2011
Consultation On Pension Contribution Changes Published
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Consultation On Pension Contribution Changes Published
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25 July 2005
Pension Age 'should rise to 67'
The pension age in the UK should be raised to 67, a report by the Institute for Public Policy Research (IPPR) has suggested.
Pension Age 'should rise to 67'
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