This report expresses concern about the high cost of defined-benefit (DB) pensions schemes and the burden which they place on UK private companies. The author contrasts the high level of payments with those made to defined contribution (DC) pension schemes, placing younger workers at a financial disadvantage.
He includes recommendations from the Intergenerational Foundation and the Department of Work and Pensions for the adoption of fairer measures, including the abolition of deficit reduction payments. This would release funds to establish more equitable pension schemes for the employees of private companies. Other proposed changes include new tax rules covering DB pensions, and the appointment of at least one person under 30 to all pension trustee boards.