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06/09/2006
UK top bosses' £1 billion pension 'pot'
Directors of the UK's top 100 companies have amassed pensions worth nearly £1 billion, according to a report by the Trades Union Congress.
The TUC's analysis of boardroom pensions found that the average executive could retire at 60 on a final salary pension worth nearly £3 million, while the largest directors' pension in each company was found to be worth nearly £5 million - over 40 times more than most staff pensions.
The union said that the proportion of directors with final salary pensions had remained at over 80% since their survey began in 2003, while many such schemes had been closed to staff.
The TUC said that only around a third of UK companies had a salary-related scheme open for all employees.
As a result, the TUC said, directors' final salary pensions were most likely to build up twice as fast as the most common rate for employees, meaning that it takes staff 40 years, on average, to reach full pension, while directors take around 20 years.
The TUC's report also found that over three quarters of companies allowed directors to retire on a full pension at 60.
Commenting on the report, TUC General Secretary Brendan Barber said: "Britain's boardrooms and business lobby groups have failed to tackle upstairs-downstairs style company pensions. If bosses were in the same scheme on the same terms as staff, they would still build up massive pensions compared to employees, but they would be fairer. It would also help reduce their company pension deficits."
(KMcA/EF)
The TUC's analysis of boardroom pensions found that the average executive could retire at 60 on a final salary pension worth nearly £3 million, while the largest directors' pension in each company was found to be worth nearly £5 million - over 40 times more than most staff pensions.
The union said that the proportion of directors with final salary pensions had remained at over 80% since their survey began in 2003, while many such schemes had been closed to staff.
The TUC said that only around a third of UK companies had a salary-related scheme open for all employees.
As a result, the TUC said, directors' final salary pensions were most likely to build up twice as fast as the most common rate for employees, meaning that it takes staff 40 years, on average, to reach full pension, while directors take around 20 years.
The TUC's report also found that over three quarters of companies allowed directors to retire on a full pension at 60.
Commenting on the report, TUC General Secretary Brendan Barber said: "Britain's boardrooms and business lobby groups have failed to tackle upstairs-downstairs style company pensions. If bosses were in the same scheme on the same terms as staff, they would still build up massive pensions compared to employees, but they would be fairer. It would also help reduce their company pension deficits."
(KMcA/EF)
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