UK - An offer by some MPs to scrap their final salary pensions has been rubbished as a "token gesture" by leading consultants.
The comments follow last week’s pledge by some MPs to scrap their own final salary schemes on grounds that it was “too generous.”
Frank Field MP, who is spearheading the move, said that retaining the taxpayer-funded scheme was tantamount to “damaging hypocrisy” when there were workers retiring without any pension at all.
“If MPs are seen to be protecting their own interests while people like the ASW workers retire with nothing, all hell will break lose in their constituencies,” said Field in an earlier interview.
But the move has been lambasted by other industry experts.
Ian Eggleden, european partner at Mercer Human Resource Consulting, dismissed the move, pointing out that “real action” was needed on state pensions, means-testing and contracting-out.
“MPs deciding to scrap their pensions does not help the economy at all and is of little relevance or consequence,” he said.
“What we need is a decent level of state pension so that everybody can come out of the area in which they are means tested.”
He added: “Personally, I think this is a bit of a token gesture as it doesn’t change anything.”
Other consultants, who wished to remain unnamed, also dismissed the move, with one describing it as “a joke.”
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