CBI responds to defined benefits pension schemes green paper

The CBI has responded to the launch of a Green Paper on defined benefits pension schemes.

Neil Carberry, CBI Director of People and Skills said:

“The Green Paper is a sensible start to what is a complex conversation about how we both boost growth and honour pensions promises. 

“Firms will welcome proposals to offer schemes greater flexibility, as well as proportionate changes to the powers of the Pensions Regulator, as businesses carry the bulk of the costs of failure through the PPF levy. 

“What we need to avoid are any measures that risk damaging the health of the sponsoring employer, and therefore the security of the scheme, like mandatory clearance on certain corporate transactions.

“Actions like moving to the official measure of inflation for indexation (CPI) and encouraging different ways to accurately and appropriately measure the funding position of schemes, could provide real support to businesses.”