New calls are being made by the TUC for employers to promote compulsory pension schemes, in a bid to resolve the pensions crisis. It has been found that people need to save 15 per cent of their income to provide a decent pension. Under new plans proposed by the union, employers should provide ten per cent and employees five per cent. The TUC also wants the government to increase the basic state pension in line with earnings. TUC general secretary, Brendan Barber, said: "When we first proposed compulsion, most commentators said that we had little hope of making headway. Yet the tide is turning in our direction." The TUC wants the new compulsory savings regime to be run by a body modelled on the Low Pay Commission. This would include unions, employer representatives and independent experts. Mr Barber pointed out that good companies were getting restless: "Companies that provide good pensions are asking why they should be undercut by those who do not." He concluded that firms who oppose compulsion have so far, "failed to find any convincing alternative other than 'work 'til you drop' higher retirement ages to make up for the obvious failure of voluntarism".
© |