Government urged to act over pensions

The National Association of Pension Funds (NAPF) has called on the government to be more supportive of workplace pensions.

According to the organisation’s annual survey, the recession had an impact on private sector defined-benefit pensions, as 23 per cent of schemes are now open to new members, compared with 28 per cent 12 months ago.

However, the study also found that contributions to defined-contribution (DC) schemes have not been significantly dented by the economic downturn.

It revealed that the average contribution rate for DC pensions currently stands at 11.5 per cent, with ten per cent of schemes planning to increase contributions in the future.

’Our survey shows the high levels of commitment employers have in providing good quality pensions for their staff, but the recession has made their job more difficult,’ said Joanne Segars, chief executive of the NAPF.

She described the upcoming pre-Budget report as a ’golden opportunity’ for Alistair Darling to take action on pensions.

The chancellor is due to deliver his final pre-Budget report for the general election on December 9th.
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