Date Mon 8 August 2011
Huge gap in private sector pensions – UNISON response
UNISON, the UK’s largest union, called for pension fairness,
as a study by the High Pay Commission revealed a huge inequality
between the value of, and access to, pensions in the private
The study, out today (8 Aug), revealed that 97% of FTSE 350
company executive directors have a company-backed pension -
compared to just one third of UK private sector workers. This
means nearly 15 million private sector workers do not have access
to a scheme to which their employer contributes.
The average FTSE 100 lead executive with a final salary pension
could expect to receive nearly £175,000 - completely dwarfing
the £6,000 pension those private sector workers who are in a
scheme can hope to receive.
Dave Prentis, UNISON General Secretary, said: “This study shows
just how unfair pensions provision is in this country. At the
top of companies, nearly all directors have access to a pension
to which their employer contributes. When they do retire, they’ll
get a six figure pension.
“Then at the bottom, two thirds of workers do not have a pension
that their employer pays into. And the so-called ‘lucky’ ones
that do will only get £6,000 a year when they retire.
“Many of the most vocal critics of public sector pensions are
the same company directors who are set to retire on a fortune.
This is rank hypocrisy - employers need to understand the importance
of decent pensions.
“For all the private companies, who shirk their responsibilities
to provide their workers with decent pension, it only increases
the burden on the taxpayer.
“The taxpayer ends up paying more in means tested benefits,
and in increased take up of health and social care services.”
UNISON UK Press release http://www.unison.org.uk/asppresspack/pressrelease_view.asp?id=2399