Growth of contract DC pensions over trust based schemes is extremely worrying, says TUC

The latest Pension Trends statistics, published today (Tuesday) by the Office for National Statistics, show that the number of people saving in a contract based defined contribution (DC) pension scheme through their workplace has overtaken the number saving in a trust based DC scheme this year.

The figures show that 8.8 per cent of the private sector workforce are now in a contract based DC pension - up from 8.6 per cent last year - while 8.7 per cent are now in a trust based scheme, a fall of 0.2 per cent in a year.

Commenting on the figures, Midlands TUC Regional Secretary Rob Johnston said:

"Few will be surprised at the decline of defined benefit pensions, but the growth of contract DC at the expense of trust based DC should not be over-looked. 

"Of course some contract based schemes offer good value and some trust based schemes are not as well run as they should be, but this trend is extremely worrying.

"In a trust based scheme trustees have a single duty - to look after the interests of all scheme members both active and deferred. A contract based scheme in contrast is normally provided by a company seeking to make a return to its shareholders.

"While market forces can often be relied on to keep costs down, decades of experience show that markets don't function when it comes to pension provision - especially as it is not even the consumer that buys a workplace pension, but their employer.

"With the introduction of auto-enrolment bringing a huge increase in DC pension saving over the next few years, we need to ask hard questions about how we can deliver good governance, low charges and sophisticated investment strategies."

SECRET PLOT TO ROB OUR PENSIONERS OF THEIR HARD EARNED BENEFITS

Stop This Mean Attack On Our Pensioners Now - Daily Express July 11th Page 5.

Commentary by Neil Duncan Jordan, national officer of the National Pensioners Convention.

In recent weeks, Government politician's have been lining up to argue that the country's economy is struggling because there is an army of millionaire pensioners joy riding with their free bus passes. The latest one is Nick Boles MP who has trotted out the same misinformed, half baked case. Lets have a much needed dose of reality. Out of 11 million pensioners, the number of millionaires would barely be enough to fill a fleet of buses. Not only that but does Mr Boles really think that Sir Paul McCartney queued up in his local town hall to fill in his application form for a bus pass? In truth, the economic crisis is being used by some to roll back the gains of the welfare state that older people have secured and worked for over many years.

There is also a totally inaccurate suggestion that pensioners have escaped the austerity measures at the expense of younger generations. In fact there have already been significant detrimental changes to the way  pensions are increased every year, a cut in the winter fuel allowance and reduction in care services. The truth is that both young and old are being hit by the cuts while the rich are still claiming their bonuses.

Evidence

The suggested alternative is to introduce a huge and expensive means-tested bureaucracy that would take away the bus pass, winter fuel allowance and free TV licences from anyone not already on income support of around £7500 a year. How anyone could suggest that a pensioner on little more than this was well off simply beggars belief. Not only that, but all the evidence shows that when services are means-tested, those who need it most are the very ones that do not come forward to make a claim. But the real problem with Mr Boles's argument is that it counts the cost of pensioners without recognising their value. Every year, even after we have paid out for pensions, care and other benefits, older people contribute £40 billion in taxes, voluntary work and unpaid caring.

They are often the glue that holds our communities together, but this is only possible because they are able to get out and about. If the bus pass was withdrawn, the problems of social isolation, loneliness and depression among older people would rise - along with the demand on health and care services. In the long run saving £1 billion on the bus pass would cost considerably more. So while Mr Boles has grabbed a headline, his argument rather missed the point. When the UK finally gets a state pension that is not the fourth from bottom in Europe, and everyone pays their fair share of taxes, then we can start discussing his idea's to the  who should get a bus pass. Until then, let him put his ideas to the older voters.  

In conclusion we Pensioners who are members of the Midlands TUC Network will keep a close eye on developments on our pensions and will be prepared to campaign vigorously to help protect our Benefits and those of future pensioners - Mike McLoughlin  



REPORT OF THE MIDLANDS TUC PENSIONERS NETWORK MEETING HELD ON FRIDAY JUNE 29TH

This Meeting Was The First Regional Network Meeting Chaired By Yvonne Washbourne

Our Newly Elected Chair.  

Attendance at Network Meetings: - This meeting was a relatively poorly attended meeting, in the main due to a clash with other events taking place on the same day. It was noted that over the past couple of years our attendance has been dropping off steadily - in the discussion that followed it was decided that this issue needs to be thoroughly discussed at the next E-C meeting with a view to taking steps to rebuild the Network. It was stated that some of the Unions were helping to curtail involvement of retired members in the Network by insisting that only the Regional Committee's could appoint delegates to the Network (usually a small number), forgetting that the idea behind the setting up of the Network was that any retired member could attend and that it was always the intention to get all union branches with retired members involved in the work of the Network. The E-C to develop its thinking about the best way to relaunch the Network and spell out clearly what its aims and objectives are.

Network Banner: - The Network has now purchased a banner which is quite attractive and will help to raise our profile at public events - the banner made its debut at the recent Chainmakers Rally - the only retired groups banner to be there - The banner will also be going to Tolpuddle in July. there was a view expressed That we have to stop being a talking shop and get out there and organise activity in the region on specific issues affecting pensioners and develop relations with other pensioners groups - as well as developing a working relationships and alliances with people who are still in work.

Chair & Vice Chair's recent meeting with the TUC Regional Secretary: - Yvonne and Bob in their meeting with Rob Johnson were able to explore the role of the Network and how it should relate to the TUC, as in the past this relationship has mostly been undeveloped. Considerable progress was made at this meeting - we have for the first time been accepted as an Equality Committee, we will have this new status from January 2013, in the meantime we can continue with the present level of financial support from the TUC. From January all the Regions Equality Committee's will have their financial support capped at £250 - although this figure does exclude postage. This will give us a serious problem as this amount will not cover three meeting per year at the Spot Conference Centre. In future the Regional TUC will write to all its affiliates and Trades Councils and ask for nominations to the Network E-C, there is also the possibility that we will be given in the future an observers seat on the TUC Regional E-C. The meeting concluded that Derby was geographically the best place to hold our regional meetings, the current trade union meeting rooms were not large enough to accomadate us and members were asked to obtain the cost of other meeting rooms in Derby. 

E-C Vacancies:- There are currently two vacancies for Women on the Network Executive Committee, one from the West Midlands and one from the East Midlands, nominations for these positions are now required and should be forwarded to the Secretary (Sheena Gordon).

Getting Organised: - Dick Muskett SERTUC Support Officer gave us an excellent presentation on the need and the way in which Retired members can get organised at the present time. This generated a lively and far reaching discussion, many of the points raised will be discussed in greater detail at the next Executive committee meeting. We also touched on the favourite pastime of the press, which is pensioner bashing, implying that we are in some way responsible for the present financial crisis. It was concluded that we must not allow any splits to develop in the pensioners movement, nor with young people and workers. The National Pensioners Convention (NPC) are planning events for October which are designed to bring all three groups together.

Future Activity: - Our support has been requested for two events in October - firstly our support is required for the Rally which will be held at the Conservative Party Conference to be held in Birmingham on October 7th. It was agreed that we will have to pull all the stops out on this one and really try to mobilise pensioners from right across the region for October 7th. Secondly we have been asked to support the TUC Rally which will be held in London On October 2oth. Considerable debate was generated on the issue of the TUC London Rally - the view was put strongly that many pensioners would be unwilling to travel to London, and that we should seriously consider organising activity on that day in the large population centres e.g. Birmingham, Nottingham, Leicester, Derby, Wolverhampton etc. This issue will be further debated by the E-C, who will also make enquiries as to how many buses are being laid on by the trade unions, and what provision if any will be made for retired members to travel on them.

Mike McLoughlin TUC Network.