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TUC: Directors enjoying better pension provision than workers
2 September 2008 12:36
There is an unfair discrepancy between the workplace pensions enjoyed by company directors and those provided for their staff, according to a new report.
The study by the Trades Union Congress (TUC) indicated that the top bosses at 102 of Britain's biggest companies have on average a pension pot worth £201,700 a year, which is around 25 times what an ordinary worker can expect to receive.
Moreover, three out of four directors are still on final salary schemes, despite the provision of this type of pension being scaled down, while those in defined contribution schemes benefit from an average employer contribution of 21 per cent.
Directors' pension arrangements were also found to be shrouded in secrecy, with just four of 19 firms analysed actually disclosing the accrual rates used to calculate pension benefits, prompting the TUC to call for greater clarity.
Its general secretary Brendan Barber insisted that if directors genuinely do deserve these lucrative pension agreements, then they must be willing to declare them to their company's investors and other staff.
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