Menu
06/09/2006
UK top bosses' £1 billion pension 'pot'
Directors of the UK's top 100 companies have amassed pensions worth nearly £1 billion, according to a report by the Trades Union Congress.
The TUC's analysis of boardroom pensions found that the average executive could retire at 60 on a final salary pension worth nearly £3 million, while the largest directors' pension in each company was found to be worth nearly £5 million - over 40 times more than most staff pensions.
The union said that the proportion of directors with final salary pensions had remained at over 80% since their survey began in 2003, while many such schemes had been closed to staff.
The TUC said that only around a third of UK companies had a salary-related scheme open for all employees.
As a result, the TUC said, directors' final salary pensions were most likely to build up twice as fast as the most common rate for employees, meaning that it takes staff 40 years, on average, to reach full pension, while directors take around 20 years.
The TUC's report also found that over three quarters of companies allowed directors to retire on a full pension at 60.
Commenting on the report, TUC General Secretary Brendan Barber said: "Britain's boardrooms and business lobby groups have failed to tackle upstairs-downstairs style company pensions. If bosses were in the same scheme on the same terms as staff, they would still build up massive pensions compared to employees, but they would be fairer. It would also help reduce their company pension deficits."
(KMcA/EF)
The TUC's analysis of boardroom pensions found that the average executive could retire at 60 on a final salary pension worth nearly £3 million, while the largest directors' pension in each company was found to be worth nearly £5 million - over 40 times more than most staff pensions.
The union said that the proportion of directors with final salary pensions had remained at over 80% since their survey began in 2003, while many such schemes had been closed to staff.
The TUC said that only around a third of UK companies had a salary-related scheme open for all employees.
As a result, the TUC said, directors' final salary pensions were most likely to build up twice as fast as the most common rate for employees, meaning that it takes staff 40 years, on average, to reach full pension, while directors take around 20 years.
The TUC's report also found that over three quarters of companies allowed directors to retire on a full pension at 60.
Commenting on the report, TUC General Secretary Brendan Barber said: "Britain's boardrooms and business lobby groups have failed to tackle upstairs-downstairs style company pensions. If bosses were in the same scheme on the same terms as staff, they would still build up massive pensions compared to employees, but they would be fairer. It would also help reduce their company pension deficits."
(KMcA/EF)
Related UK National News Stories
Click here for the latest headlines.
20 June 2005
Pensions coalition calls for ‘fair deal’
A new coalition is calling on the new government to deliver a new ‘fair deal’ on pensions. Four organisations – the Trades Union Congress (TUC), Age Concern, Help the Aged and consumer watchdog Which? – have joined together to form the People’s Pensions Coalition to campaign for fair pensions reform.
Pensions coalition calls for ‘fair deal’
A new coalition is calling on the new government to deliver a new ‘fair deal’ on pensions. Four organisations – the Trades Union Congress (TUC), Age Concern, Help the Aged and consumer watchdog Which? – have joined together to form the People’s Pensions Coalition to campaign for fair pensions reform.
07 September 2004
Pensions Secretary quits government
The Work and Pensions Secretary Andrew Smith has resigned from the Cabinet, saying he quit in order to commit more time to his constituency and spend more time with his family.
Pensions Secretary quits government
The Work and Pensions Secretary Andrew Smith has resigned from the Cabinet, saying he quit in order to commit more time to his constituency and spend more time with his family.
24 November 2005
TUC raps bosses 'luxury' pensions
The TUC has rapped the top rate pensions paid to company directors, while workers are asked to work longer for smaller pensions. A TUC report claimed that 8 out of 10 of the UK's top companies provide directors with pensions that can pay out in full at 60 and are worth, on average, 26 times those of most employees.
TUC raps bosses 'luxury' pensions
The TUC has rapped the top rate pensions paid to company directors, while workers are asked to work longer for smaller pensions. A TUC report claimed that 8 out of 10 of the UK's top companies provide directors with pensions that can pay out in full at 60 and are worth, on average, 26 times those of most employees.
11 June 2004
Changes needed to alleviate 'pensions crisis', says TUC
Large numbers of young people face poverty in retirement unless big changes are made to pensions law and young people wake up to their pensions plight, the TUC has warned today.
Changes needed to alleviate 'pensions crisis', says TUC
Large numbers of young people face poverty in retirement unless big changes are made to pensions law and young people wake up to their pensions plight, the TUC has warned today.
13 August 2004
Stakeholder pensions are failing low-pay workers, TUC claim
Low paid workers are not getting the benefit of stakeholder pensions as employers are not contributing enough to make any headway in staving off Britain's looming pensions crisis, the Trades Union Congress (TUC) has claimed.
Stakeholder pensions are failing low-pay workers, TUC claim
Low paid workers are not getting the benefit of stakeholder pensions as employers are not contributing enough to make any headway in staving off Britain's looming pensions crisis, the Trades Union Congress (TUC) has claimed.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
