date: Dec 17th 2002 embargo: immediate

Attention: political, industrial, personal finance

Pensions Green Paper - "step in right direction, but more needs to be done"

Responding to the Pensions Green Paper, TUC General Secretary John Monks said:

'The only long term solution to the pensions crisis is a new partnership between employers, employees and government, with contributions from both employers and employees building a pension on top of a secure state pension foundation.

'However it has always been clear that we were not going to win that today. Our test therefore is whether the Green Paper takes us nearer that solution or puts road blocks in its way.

'On that basis the Green Paper is a step in the right direction, and contains many other very welcome measures. It does not rule out compulsion, although it is clear that voluntarism is to be given one last chance. It rejects raising the state pension age, an important victory for union campaigning. We are very pleased to see day one pension rights. We support moves to give people more choice about when they retire, and to make the move from work to retirement more flexible, as long as it is not based on raising the state pension age.

'We welcome the consultation on better protection for current scheme members, mutual insurance, and particularly consultation on changes to schemes. We broadly support the simplification agenda, though will want to study the complex proposals published today carefully before we respond.

'Our campaign for the new pensions partnership goes on. We have always known we will not achieve it overnight. Much more needs to be done, but on balance today’s Green Paper is positive. As it becomes clearer that voluntarism does not deliver we believe that we will win. Otherwise we will be condemning growing numbers of people at work today to poverty in retirement.'

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Press release (400 words) issued 17 Dec 2002