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date: 15 December 2009

embargo: For immediate release

TUC comment on DWP response to risk sharing consultation

Commenting on the Department for Work and Pensions' response to the collective Defined Contribution (DC) section of their risk sharing consultation, published today (Tuesday), TUC Assistant General Secretary Kay Carberry said:

'The employer retreat from defined benefit pensions means that many more people are now saving in DC pensions. Yet these often have poor contributions, high charges, are over-invested in equities, and lack both governance and member involvement.

'Individual savers face big risks as they bear all the costs of the volatility of both investments and annuity rates. This is why there is a growing interest in collective approaches to DC pensions - which could offer more to members than DC schemes based on individual accounts - from all sides of the pension debate.

'While we may not be able to simply transfer the Dutch model to the UK, we do need to explore a collective approach that works in the UK.

'The role of trustees, which the TUC believes should be at least 50 per cent member-nominated, and employers paying adequate contributions will be vital in a collective DC approach.'

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Contacts:

Media enquiries:
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk

Press release (300 words) issued 15 Dec 2009