News story

9th September 2002

Employees Need Greater Protection From Pension Scheme Closures

Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary, commenting on the TUC’s call for legislation to make it compulsory for companies to provide good occupational pensions, said:

“Most employers recognise the importance of looking after their employees. This should extend to providing them with something to live on in old age. It is reasonable to expect companies to provide good occupational schemes.

“If companies are unable to provide for their employees, then the state must be able to provide adequate provision.

“It is vital to ensure that employees are protected against under-performing funds being wound up. Employees’ rights are woefully inadequate when such schemes are closed. The Government has had years to put this right and must get its house in order as soon as possible.”

ENDS