New threats to defined benefit pensions
A new survey from Pricewaterhouse Coopers suggests that there is to be a further round of pension scheme closures. This is what I have said about this today:
“Companies are using the recession as an excuse to make savage cuts in pensions. But recessions are short term, and pensions are long term investments that can ride ups and downs in the economy.
“Unions negotiate constructively to deal with genuine pensions difficulties and longer lives. But too many attacks on pensions are no more than companies walking away from a long term commitment to their staff, and are part of the same short-term profit seeking that gave us the financial crash.
“Unions stand ready to resist such attacks, but there is little that non-union workforces can do.”