Britain’s manufacturers have today urged government not to shy away from taking the tough decisions that will need to be made if the UK is to have a viable and sustainable system of pension provision in the future.
Commenting ahead of this week’s expected White Paper on Pensions Reform, Director General of EEF, the manufacturers’ organisation, Martin Temple, said:
"Government must not shirk from the challenge of taking the tough decisions necessary to tackle such an important issue. The time for words has come and gone and companies are now looking for firm leadership that will help them plan their own responsibilities for pension provision in the future with a degree of certainty.
"It must also use the White Paper to build the widest possible consensus on the way forward. This will be helped by a commitment to provide some initial Government financial assistance for smaller employers when the National Pension Savings Scheme is introduced"
EEF backed its call by setting out the following key criteria on which it would judge whether the White Paper had been radical enough and achieved these objectives :-
- Does it provide a comprehensive and integrated package of proposals that provides simpler and more transparent state pension arrangements, reducing the need for means-tested benefits and enabling pensioners to benefit from the UK’s improved economic performance?
- Does it introduce a low-cost opportunity for employees without access to occupational pension schemes to be able to save for their retirement?
- Does it contain a clear commitment to provide practical support for employers when the National Pension Savings Scheme (NPSS) is introduced, comprising phased implementation for all employers with smaller companies also receiving some additional initial financial assistance from the Government?
- Does it contain a commitment that the minimum employee and employer contributions into the NPSS will be set out in primary legislation?
- Does it ensure that women will have the same opportunity as men to earn, in their own right, the full entitlement to the basic state pension.
- Does it provide employers with occupational pension schemes with a simpler and better regulated environment.
"Any future pensions system must have simplicity, transparency, inclusion and individual ownership as its overarching principles if it is to be sustainable. It must also create an environment that encourages a more flexible approach to retirement by employees, employers and the government" added Mr Temple.