"Personal Account Pensions" are to be introduced by the government. These will be aimed at employees who until now have not been able to take advantage of a company pension scheme.
A White Paper about to be published introducing the scheme follows recommendations of the Turner Pensions Commission set up to to find ways to involve the wider working population in saving for retirement.
12 million workers currently do not have any, or do not have enough pension provision.
Pension Accounts, of which the government will contribute 1%, will require employers to pay their own contribution amounting to 3% of salaries in addition to workers paying 4% of their salary. As expected, employers are not enthusiastic about the new pension scheme.
Not to worry though (If you're an employer).
Staff will be able to 'opt out' of the scheme.
This re-run of the Working Time Directive (see WorkRep article: ' ... a reform' of their own )will most likely be of little benefit to workers as employers will no doubt ensure that their workers take full advantage of their right to the opt-out.
The present government's craven attitude to the employers' lobby means that we will no doubt continue to see similar 'toothless' legislation being adopted by Parliament.
It does seem too much to hope for that things will change once the present incumbent leaves 10 Downing St.
© Workrep 11 / 12 /2006