UK - Company directors receive more favourable pensions than their employees, according to data released from the Trades Union Congress (TUC).
The TUC’s report showed that despite 59% of the 102 companies surveyed having closed their defined benefit schemes (DB), 79% of company directors were still in line for a DB pension.
Brendan Barber, TUC General Secretary, said: “Too many top directors have gone on closing or cutting schemes for their workforce, while keeping gold-plated pensions for themselves.”
TUC data revealed that the average executive could retire on a final salary pension worth £3m (US$6m), an increase of £300,000 on last year’s figures, and more than 25 times a the average worker’s pension in the UK.
The report also showed directors with a defined contribution (DC) scheme would receive around 20% of their salary in a pension pot.
Barber continued: “Even if top directors were in the same scheme as their workforce they would still get big pensions because their pay is so much greater than those of the staff they employ. But this is not enough for many top bosses; they need to have a guaranteed extra on top.”
The report concluded it would take an average UK employee 40 years to reach a full DB pension, whereas it would often take their bosses half that time.
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