UK - More than one fifth of companies may have to get rid of staff if compulsory employer pension contributions are brought in according to a survey conducted by the British Chambers of Commerce (BCC).
A BCC delegation, led by director general, David Frost are to meet with Tony Blair today to highlight this and other concerns over the effect pension reform could have on the private sector as a whole.
A spokesperson for the BCC said: “The BCC are concerned the private sector, at the moment, is picking up the tab [for pensions] and it could get worse for private sector members.”
A slow down in the economy has also caused concern for the BCC who feels extra red-tape will burden companies.
The spokesperson said the BCC is also “acutely aware” the deadline for the Pension Commission report on UK pension reform, led by Adair Turner, is not far away and is keen for Blair to put these issues on his agenda before it is too late.
A buyout tool which provides schemes with up-to-date pricing and comparisons between insurers has been launched by JLT Employee Benefits.
The DB white paper sets out plans to review the funding regime, with 'prudent' and 'appropriate' possibly redefined. But James Phillips asks if this could this signal a return to an MFR-like approach?
The trustees of GKN's pension schemes have agreed a package of mitigation measures that would improve funding to a "more prudent level" if Melrose's offer is accepted by shareholders next week.
While the new powers are welcome, most respondents doubt it will make a difference to the outcomes for members, Pensions Buzz respondents say.