Unison Herts

"This is a good first step" said UNISON general secretary Dave Prentis.  "We are pleased that the commission has recommended the state pensions link with earnings should be restored,  It should, however, start at a good base rate.  This is something we have been  saying for a long time".

He added, however, that the 'Turner Report's' proposal to raise the state pension age to 68 by 2050, did not take into account that the life expectancy of some workers has not risen.  "This will mean more people will either not reach retirement or have less time enjoying it", warned Prentis.  "The protections suggested in the report for this group are very weak because they rely on means testing.

The commission also recommended the setting up of a national pensions saving scheme for all workers.  According to the proposals, employee would automatically pay contributuons of 4% of gross pay above £5000 into the scheme.  Employers would be obliged to contribute a further 3%.

UNISON has long argued the need for compulsory employers contributions.  But, said Prentis, Lord Turner's report could have gone further.  "If a national savings scheme were introduced then employers should be made to pay more than 3% he said.  "Employer's contributions should be 10%.  An employers' rate of 3% would not provide an adequate pension for the low paid, especially part-time workers."