Commenting on some of the detailed proposals in the Pensions Commission report published today (Wednesday), TUC Midlands Regional Secretary Roger McKenzie said:

Pension age and retirement

'We remain opposed to any proposal to increase the state pension age that would make manual workers and the poor worse off. They should not have to pay for a new pensions settlement. We will be studying in detail the option to allow 65 year olds to claim means tested pension credit as this could provide some help for those who would lose out the most from this proposal.

'We welcome the proposal to scrap a formal default retirement age. We think this should be a matter for individual choice. But if people are to work longer then we will need major changes in employer attitudes, and new routes through part-time and changed job roles to a flexible retirement.

Basic state pension

'The Commission's proposal for linking the basic state pension to earnings once again is extremely welcome. You cannot build a long-term pensions system on mass means-testing of pensioners, and making the basic state pension a sure foundation for all is the right approach. While we would want to see an increase in the basic state pension to pensions credit level, we recognise that a reformed state second pension will do this for many people.

'Making a universal pension based on residence retrospective was always tricky. Giving a higher state pension as of right to the over-75s is an effective way to help many of the poorest women pensioners, and those put off means-tested benefits.'

State Second Pension

'The Commission is right to keep the State Second Pension. The argument to scrap it because of its complexity may be superficially attractive, but it would have hit those on average and below average incomes hard. We warmly welcome the improved credit system for carers. The precise future of State Second Pension and how it fits with the rest of the pensions system is now a key issue for debate.'

Women

'We believe the proposals in the report will be good for women. The Commission is very clear that a new pensions settlement should serve those facing poverty in retirement - and this will help women simply because they are by far the most likely to be poor when they retire. A quick boost to pensions for the over 75s will do much to help today's poorest pensioners, and the rest of the report will help those retiring in future years.

Compulsion

'The TUC has been at the forefront of those arguing for compulsion on employers. Their retreat from providing decent pensions is one of the factors fuelling the poor pensions prospects of today's workforce. This is therefore a major victory for TUC campaigning. Government should listen to those employers - like the EEF, the manufacturers' organisation - who have backed compulsion as the best way to stop good employers being undercut by the bad.

'While we would have preferred a system closer to the Australian approach and with higher contributions, we recognise the Commission has made a recommendation that has the potential to build wide support, and cannot be accused of being any kind of incentive to close existing schemes.

'Although part of the technical detail, the proposals on tax relief will give a real boost to part-time women workers who are often the biggest losers in today's pensions system.'

Overall response

TUC Midlands Regional Secretary Roger Mckenzie said:

'This is a bold and hard headed report. It sets politicians - and all of us involved in the pensions debate - a real challenge to create the consensus needed to implement its radical agenda.

'Of course in such a detailed report there are proposals that we do not like, and other areas where we would have liked it to go further.

'We remain opposed to any proposal to increase the state pension age that would make manual workers and the poor worse off. They should not have to pay for a new pensions settlement.

'But the clear majority of the conclusions are undoubtedly progressive, and meet the tests we set in advance.

'Linking the basic state pension to earnings and introducing compulsory employer contributions are both extremely welcome. The report clearly offers women a better pensions deal.

'No one group was ever going to have all its policies adopted today, and there are no doubt some proposals that can be improved. But there are no pain free solutions to pensions. Employers, employees and the state, through tax revenues, must all play their part.

'The great danger now is that a combination of vested interests who did not get their way, opposition politicians looking to make mischief and an underestimate of voters' willingness to back radical policies kicks today's report into the long grass.

'The real divide is between those who want to use today's report to build a new fair pensions settlement and those who do not.'

NOTES TO EDITORS:

- All TUC press releases can be found at www.tuc.org.uk/midlands

Contacts:

Media enquiries: Roger McKenzie, T: 0121 263 4454; M: 07879 497 291;

E: rmckenzie@tuc.org.uk; Alan Weaver, T: 0121 263 4454; M: 07771 778 694;

E: aweaver@tuc.org.uk

Press release (900 words) issued 30 Nov 2005