UK - Leading consultants are joining forces to confront the TUC over compulsory employer pension contributions.
Mercer Human Resource Consulting and Watson Wyatt insist compulsion will not solve any of the UK’s pension issues.
Mercer European partner Matthew Demwell said: “Employees are beginning to take more responsibility for their own financial health. Inthis environment, they need better education and advice, encouragement and flexibility – not compulsion and regulation.”
Watson Wyatt pensions benefit specialist Colin Singer added: “If you contribute much less than 20% of pay it will be insufficient – getting employers to contribute will be miles too much for political acceptability.”
But TUC pensions officer Michelle Lewis said: “We recommend starting contributions at a lower level and increasing them over time. We also recognise that employees must contribute too.”
Lewis also dismissed Mercer’s suggestion that an increase in state benefit to £140 a week would provide a more realistic level of basic provision.
She said a “significant increase” in the state element of pension provision was unlikely given that the government’s stated aim is to reduce the state’s responsibility.
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