UK - Unions will price people out of jobs if they make pension contributions a key part of pay negotiations, a leading fund manager warns.
Trade unions have warned firms to make “adequate pension contributions” for employees or face large pay demands to make up the difference.
Amicus pensions officer Bryan Freake said: “If we roll the clock forward 10 years and we have a substantial membership in those defined contribution schemes, which are looking forward to inadequate benefits, then of course contributions will become a collective bargaining issue.”
Communication Workers’ Union assistant secretary Bill McClory agreed.
“It has become an industrial battleground. As pay is a key component of pension contributions, unions – in defending members’ pensions – will become more vigorous in improving rates of pay.”
But Barclays Global Investors chief economist Haydn Davies said successful union action would lead to an increase in inflation. This, in turn, could lead to redundancies, price rises and an increase in interest rates predicts.
A "substantial" parliamentary bill acting as a "roadmap" for the long-term future of private pensions will lead to a "significant period of calm", Guy Opperman has promised.
The Department for Work and Pensions (DWP) has completed its appointment process for the Single Financial Guidance Body's (SFGB) board, naming three non-executive directors.
Pensions and financial inclusion minister Guy Opperman has launched a simplified two-page annual statement in a bid to provide a best practice template for the industry.
Some 70% of defined contribution (DC) members want to know their scheme is personalised and tailored to their needs, an Invesco language study reveals.