UCATT calls for boost in pension contributions

Union leaders want the minimum employer contribution to the industry stakeholder pension to be raised from its present level of £1.90 to £5 within the next three years.

Currently the employer contribution to the EasyBuild scheme is £5 only if there is a matching contribution from the operative.

George Brumwell, general secretary of UCATT, said: "We would like to see a three- or fourfold increase in the number of members making their own contributions."

Brumwell claimed that, if the minimum employer contribution had moved in line with wages, it should already stand at £3.30. It is normal for employers to make a larger contribution than the policyholder, but moving the minimum to £5 could make a £1 per £1 contribution more acceptable.

The union chief forecasts that the government will eventually legislate to compel people to contribute to saving for their retirement outside the state pension. "That will not be politically attractive," he said. "But I think they will be forced down that route."

EasyBuild is run by the B&CE company. According to chief executive Brian Griffiths the scheme now has 196,000 members, making it easily the largest stakeholder pension in the UK.

A total of 33,000 policyholders are making their own regular contributions. That is six times the number who previously made additional voluntary contributions under the old lump sum retirement scheme run by B&CE.