The largest pension provider in the industry, B&CE, has called on the industry to put its house in order after the publication of a report into the pensions crisis.
The Employer Task Force, an independent body set up by the government, said Britain must beef up its voluntary approach immediately but B&CE believes that compulsory schemes are required. It has called on the industry to address the issues.
John Jory, deputy chief executive of B&CE benefit schemes, said: “According to the taskforce, the government ‘may be forced to look at more drastic solutions’ if the current system doesn’t work soon. It is our long-held opinion that we will not solve the pensions crisis without some form of compulsion.”
Jory said he believed the best way for companies to tackle the problem would be to adopt an “automatic enrolment” approach.
The report by the taskforce recommended that employers and employees aim to put 15% of an employee’s salary into a pension each month. Two-thirds of this should be supplied by employers.