Confederation of British Industry warns that Government proposals give workers on fixed-term contracts the same right to a company pensions
The Confederation of British Industry has warned that Government proposals to give workers on fixed-term contracts the same right to a company pension as permanent employees could backfire. It says many fixed-term workers do not want to be in company schemes, because these generally require two years of contributions before giving a right to a pension. Many fixed term workers will leave schemes before they have been in long enough to qualify for a pension. This could lead to £13m of unnecessary administration costs and £98m in extra pension contributions.
The CBI says most employers give fixed-termers equal pay, but normally provide access to a stakeholder pension rather than a company pension.
