Wednesday, 2 November 2011

Contribution Concerns Over UK Pension Proposals

Commenting on the UK Government’s revised proposals for public sector pensions, SNP Work and Pensions spokesperson Eilidh Whiteford MP urged the Treasury to re-consider its policy on increasing contribution rates in the manner proposed at a time when members of the public face real financial pressures.

Dr Whiteford said:

“The Treasury must think again over its policy on increasing contribution rates at a time when people face real financial pressures.

“My concern is that we will see workers withdraw from pension plans because they cannot afford the increase in contributions, and in the longer term leave many wondering if they can even afford retirement.

“Most recipients of pensions are receiving only a few thousand pounds per year, not the sort of gold-plated pensions highlighted in the media, and it is women who will be hardest hit by these changes.

“The issue of pension reform requires consent to be built but, with the UK Government making clear they will slash the Scottish Budget if the Scottish Government does not implement the short term increase in pension contributions, that consent is not being achieved.

“Public sector workers, are rightly concerned about the impact of changes to their pensions by the UK Government – and the UK Government must think again.”