Businesses 'committed' to pension funds

20-07-2006

Businesses 'committed' to pension funds
British businesses are yet to waver from their continued maintenance of employees' pension funds despite rising costs, a survey from the Confederation of British Industry (CBI) has found.

Research into the pensions status of 355 businesses found that over three-quarters of respondents wanted to see their staff retire with an adequate pension, while 81 per cent thought businesses had a role in ensuring that their employees realised the importance of saving for their retirement.

Positive commitment from employers comes in spite of continually rising costs for the maintenance of existing pension provisions, as Britain's ageing population places more and more pressure on the present generation of workers.

"It is clear that employers remain committed to pensions but they are going to need support to weather the current pensions storm," said CBI deputy director-general, John Cridland.

"The government must take heed of the extra burden on companies of these massive contributions and deliver on its promises in May's pensions white paper to simplify rules and reduce regulatory burdens."

Director general David Frost of the British Chambers of Commerce (BCC), responding to today's CBI survey, argued that overregulation and leveling down were the chief threats to the government's National Pensions Savings Scheme (NPSS), saying that "clearly [the NPSS] would be self defeating if most chose to level down".

Meanwhile the Association of British Industry's (ABI) Jonathan French said that he "would like to see proportional regulation across the board for pension reform," before warning that good occupational pensions could soon become a rarity if something was not done soon.

"One of the reasons may think twice about an occupational pension is the potential regulatory burden," he said. "There is a constant call from the ABI that regulation should be principals-based and proportionate."

Related categories: Management / Business, Banking / Finance.


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