A report in the UK trade press suggests that the pension fund members representing two of the country's blue-chip companies are set to back the controversial plans for a national pension savings scheme (NPSS).
NPSS is the cornerstone of the strategy laid out by Lord Turner’s Pensions Commission in its report last year. The Turner report has subsequently come under fire from a number of bodies representing the private pensions sector in the UK.
However Lord Turner will be gratified that members of the pension funds representing telecoms firm BT and state postal operator Royal Mail have backed the NPSS plan, according to a report from Investment and Pensions Europe (IPE).
IPE’s report says that Unite (the National Federation of Royal Mail and BT Pensioners) wants Lord Turner’s proposals dealt with as a package and not filleted to remove the costlier parts that might offend the Treasury. Unite is reportedly urging its members to write to their members of parliament to demand that the plans are not watered down.
The body is also advocating the restoration of the earnings link to state pensions, and compulsory employer contributions via NPSS.