Tuesday, February 21, 2006

United Kingdom: Employers Respond to Pensions Report

The CBI has unveiled British employers' response to Lord Turner's Pensions Commission recommendations and has proposed to help tackle the UK's emerging pensions crisis without compelling business to contribute to staff pension schemes. CBI argues, in its submission to the Government, that auto-enrolment without compulsion is the best way of increasing pensions saving without undermining existing provision.

The CBI argues that forcing companies into compulsory pensions contributions would put hard-pressed firms, especially smaller ones, under great economic pressure and significantly raise labour costs while failing to boost savings levels overall. Instead, it proposes a Pension Builder plan to boost employee pension contributions, combined with additional support for smaller businesses--either a Partnership Pension in which government matches employer contributions, or a Pension Tax Credit.

Source: Press Release CBI (February 20, 2006)

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