Press Release
State pension reforms will cost about £1bn in extra tax and will further accelerate private sector final salary pension scheme closure says GMB
28 January 2013
Many employers seek to de-risk their pension schemes and lump all the risks of pension saving onto workers says GMB
GMB commented on the National Association of Pension Funds (NAPF) survey showing final salary pensions schemes in the private sector are closing at a more rapid rate. See notes to editors for National Association of Pension Funds press release.
Paul Kenny, GMB General Secretary, said:
"This confirms what GMB has long known and is storing up problems for the future. The recently announced state pension reforms will cost private sector employees about £1bn in extra tax; and will most likely further accelerate the juggernaut of final salary closure.
Many employers aren't interested in providing for a dignified retirement for their workers. They seek to de-risk their pension schemes and lump all the risks of pension saving onto workers. This is compounded by pitiful payments being made towards savings. The new requirements for automatic enrolment will provide a minimum framework, but this won't be enough.
It is long overdue that Government and the pensions industry seek to talk to the real world, get creative and find new ways to re-establish security and certainty in occupational pensions for millions of workers."
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