UK - Engineering firms have dismissed Alan Pickering's proposals to fill the defined benefit void with industry-wide schemes as being fraught with "practical difficulties".
And the Engineering Employers’ Federation says it will not set up a multi-employer scheme unless there is pressure from its members.
EEF deputy director of employment David Yeandle said: “This would be taking us in to quite new areas of service to our members which we certainly would not want to do unless there was a considerable amount of support for it.”
Yeandle added that while these schemes worked well in European countries which supported collective bargaining, similar backing would be more unlikely among UK employers.
But Yeandle noted that this issue would be discussed at the EEF pensions working group’s next meeting this month as part of a wider debate on the Pickering Report. And EEF admitted that saying it could take action if there was support for collective schemes.
Yeandle said: “If this looks like a serious runner it could certainly be an issue that we might well follow up at some stage.”
He added that the EEF already had an industry-wide defined contribution group personal pensions plan – the Engineering Industry Pension Scheme – which was originally designed for member companies which wanted to set up a relatively simple pension arrangement.
But he said a collective DB scheme would be very much more difficult to run.
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