EEF, the manufacturers’ organisation, is today setting out the criteria on which it will be assessing the Pensions Commission’s Report that will be published next Wednesday (30 November 2005).
In its detailed report that was submitted as its evidence to the Pensions Commission earlier this year, EEF called for a radical overhaul of the UK’s pensions system from 2015. This comprised the following key features:-
An enhanced basic state pension
A modest level of minimum compulsory pension contributions by employees, employers and the self-employed
Voluntary occupational and private pension arrangements in a less regulated environment.
Commenting on the Pensions Commission’s forthcoming Report, David Yeandle, EEF Deputy Director of Employment Policy, said “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.”
EEF will therefore be assessing the Pensions Commission’s Report against the following criteria:
Will its recommendations result in a simpler and more transparent pensions system?
Will they result in a basic state pension that minimises the need for means-tested benefits in the future and enables pensioners to benefit from the UK’s improved economic performance?
Will it create a pensions environment that will enable the burdens on employers to be reduced by introducing simpler and better regulation for occupational and private pensions?
Do its recommendations provide employers with the flexibility to retain their current occupational pension arrangements or contribute to their employees’ pensions through a system that reduces business risks and avoids them having to manage these funds?
Will it encourage more individuals to save for their retirement and more employers to make pension contributions for their employees?
Does it provide a mechanism for reviewing regularly the age at which the basic state pension is paid?
Do its recommendations reflect the changing nature of the UK’s labour market and society so that women have the same opportunity as men to receive a full basic state pension?