The UK's Engineering Employers' Federation (EEF) has added its voice to mounting criticism of the Myners' report by accusing the government of having a "hidden agenda" over backing its proposals.
“The Government’s strong support for the report’s recommendations seems to reinforce our view that the Treasury has a hidden agenda to discourage defined benefit occupational pension schemes. This seems to be based on the premise that the typical employee now changes jobs repeatedly over a lifetime although this is not supported by any evidence, said EEF’s deputy director of employment policy David Yeandle.
“It also appears to be considering an increase in the level of compulsory employer and employee pension contributions and, if this is the case, the Government needs to make a clearer statement about its intentions so that employers and employees can plan accordingly”, he added.
The federation - which represents about 6,000 UK engineering companies - described some of the recommendations around investment decision-making as “too detailed and prescriptive”.
“The practical experience of EEF members demonstrates that trustee boards work most effectively when they comprise a group of individuals with a range of skills and experience rather that a group of ‘experts’ “.
Other criticism included the payment of trustees. According to the EEF, additional legalities might discourage would-be trustees, and could mean that some people would volunteer “for the wrong reasons”.
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