UK - Trade union calls for employers to contribute 10% of staff salaries to pension schemes have been attacked by the Confederation of British Industry.
Bosses claim the TUC’s proposals will cost firms an extra £29bn.
CBI deputy director-general John Cridland said: “We cannot afford to add more weight to a cost burden that is pushing the pensions system towards breaking point.”
Cridland said the answer was a simpler pensions system with tax incentives which were large enough to “make a difference”.
“It is disappointing to see a continuing campaign on compulsion when the two sides of the industry should be trying to make voluntarism work.
“The cost of enforced contributions would make firms more reluctant to employ people and threaten the viability of some smaller companies.”
But the TUC disputed the CBI’s £29bn estimate. The unions claimed its proposals – based on the actual earnings of those without pensions – would cost around £11bn.
The TUC also stressed that it was recommending compulsory employer contributions, so payments would start at a relatively low level and rise over time.
TUC general secretary-elect Brendan Barber said: “What employers, employees and the government have to face up to is that to provide a decent pension for the future more has to be set aside now.
“The key issue is whether employers are going to bear a fair share of that.”
In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.
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