A £200,000 pension the norm for senior directors
The annual TUC PensionsWatch report, out today, finds that the credit crunch is yet to hit senior directors’ pension plans. The report looks at the pensions of directors in 102 top UK firms and finds that the average director can look forward to retiring at 60 on a pension of around £200,000: 25 times the national average occupational pension.
The report also looks at the criteria that determine how generous a pension really is, such as contribution rates for defined contribution (DC) schemes and accrual rates for defined benefit (DB)schemes – finding (surprise!) that they tend to be much more generous for directors than for most ordinary members of occupational schemes.
The TUC is calling for directors to be members of the same schemes as their employees and for better reporting of the criteria used to calculate directors pensions, such as accrual rates and retirement ages.