COMPULSORY PENSIONS CONTRIBUTIONS

Early day motion 994, tabled 19 April 2004 by David Crausby (Labour). Signed by 50 members.

That this House believes that there can be no solution to the pension crisis without a fundamental increase in the level of pension contributions and savings; welcomes the Government's measures in the Pensions Bill and in the Finance Bill to promote simplification and a better understanding of pensions but believes that such measures will not produce this increase and that more needs to be done to promote final salary pension schemes in both the public and private sector; notes that a half of all employers make no voluntary contributions towards their employees' pensions and recognises that the majority of employees cannot afford a decent pension from their own resources and cannot be incentivised to contribute adequate amounts; calls on the Government to introduce a compulsory minimum level of contributions by employers to employees' second pensions of 10 per cent. of earnings and at the same time to introduce a compulsory minimum level of employee contributions of 5 per cent. of earnings, accompanying this with a restructuring of pension contribution tax assistance so that it is shared more equally amongst employees; and believes that the need for greater compulsion should be accepted and that the Government should now focus its attention on the practical questions as to how best contributions should be applied as between state, occupational and personal provision.

Signatures by party: Labour 44, Labour/Co-operative 4, Liberal Democrat 1, Plaid Cymru 1.