TUC to back compulsory pensions

A CALL for a compulsory second pension is expected to be backed overwhelmingly by delegates to the Trades Union Congress in Brighton this week.

In a major change of policy, trade union bosses want new laws to force all workers to pay 5% of their earnings into their pension funds - as well as compelling employers to make a minimum 10% contribution into every worker's retirement fund.

The pension issue is now regarded by the TUC as the most important one facing all workers - more vital than wages or industrial relations.

Government schemes to encourage workers to take out second pensions have failed, the TUC said. General secretary Brendan Barber told the Financial Mail on Sunday: 'Britain must wake up to its pensions crisis.

'Millions at work today in their twenties, thirties and forties will be much worse off than those retiring today as the State and employers cut back on pensions. Individuals must play their part, but cannot make up all the gap. Pension provision is now the top union campaign.'

If the Government accepts the idea, it is likely the compulsory scheme would be phased in over a ten-year period.

Tony Blair is expected to address the pensions issue when he faces Congress tomorrow. Last week, the Prime Minister was forced to appoint Alan Johnson as Work and Pensions Secretary after the resignation of Andrew Smith.

Next month, the Pension Commission, chaired by former CBI boss Adair Turner, will give an indication of whether pension savings should become compulsory.

The Government has said it will accept a compulsory scheme if it is recommended by Turner's inquiry.

Latest TUC figures show that 44% of adults will be dependent solely on the State pension in retirement.

The scale of the crisis is illustrated by the soaring deficit in the retirement funds of FTSE 100 companies. This has ballooned to £57bn due to weak stock markets and people living longer.