GMB Welcomes Pensions Bill On Personal Accounts
The GMB broadly welcomes the government's publication today of the pension bill on personal savings accounts. Employees will be auto-enrolled into Personal Accounts if their employer does not offer a better pension scheme. Individuals will be able to opt out of participating in Personal Accounts the employee will contribute 4% on earnings between £5,000 and £33,000 (approx) with the employer contributing 3% on this amount and a further 1% contribution coming from tax relief.
Naomi Cooke, GMB Pensions Officer said: "This is a significant step forward towards providing all workers with an occupational pension for their retirement. However, the GMB is deeply concerned that using auto-enrolment instead of compulsion will enable some employers to wriggle out of their obligation to provide for their employees.
Employers can and should contribute a decent amount to their employees' pension saving, many do but the government should not allow any loopholes that companies can exploit to dodge this responsibility. The GMB will seek to work with the government to ensure that Personal Accounts are genuinely available to all those who would benefit and provide a realistic level of contributions towards retirement income."
Contact: Rose Conroy, GMB Press Officer on 07974 251823 or Steve Pryle, GMB