Commenting on the recent closure of a number of final salary pensions schemes, TUC General Secretary Brendan Barber today (Thursday) said:

"The death of salary related pensions is much exaggerated, and unions have a proud record in defending and extending pension rights. We stand ready to resist pension cuts in companies that can afford to fund deficits, have taken extended contributions holidays or expect everyone other than directors to tighten their belts. A pension cut is a pay cut, and our members expect us to defend their pay.

"Unions however recognise that in some organisations pensions do have to change, and have negotiated sensible changes that have preserved and extended good schemes while reducing their costs to employers - often despite original employer plans to cut back more severely. Rentokil, where staff do not have union protection, is still the exception in completely closing their scheme.

"Over the coming year, we expect to see even more attention focused on scheme funding as trustees try to reach reasonable agreements with employers on contribution levels. There is evidence that some employers still put greater emphasis on paying dividends to shareholders - often other companies' pension schemes - rather than funding their own employees' pension scheme."