Pension proposals - UNISON response

Commenting on the government’s pensions proposals today, Glyn Jenkins, UNISON Head of Pensions, said:"We believe all employers should contribute to their employees pensions and the fact that currently 2/3rds of UK employers let down their staff by paying nothing is a national disgrace.“But the proposals of allowing employers to contribute just 3% on a band of earnings, phased in over a number of years, is far too low to tackle pensioner poverty or provide relief to the taxpayers.“It takes a combined contribution rate of 20% and many years’ service to secure a decent pension and today’s Government proposals fall very short of the mark. It is peddling false-hope that somehow NEST will also come to the aid of the taxpayer. If employers continue to get away with paying such low contributions, good schemes will wither away and the taxpayer will have to pick up the benefits bill.”