| "Strong but not that strong" - FSB on UK pensions system |
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| 28/10/2002 | |
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The Federation of Small Businesses (FSB) has submitted evidence to the House of Commons Work and Pensions Committee inquiry into the future of UK Pensions and concluded that the present system is strong, but there would be a growing crisis if government failed to act. The evidence, based on a number of common themes that emerged from a series of FSB pensions seminars held last month, argues for simplifying tax rules "The public should know exactly what NICs pay for, and state pensions arrangements should have a fully hypothecated guarantee." The state pension should also be remodelled. The FSB said that the current situation with state pensions in the UK couldn't continue, "by 2040 Pay As You Go (PAYG) expenditure will be more than income". The FSB also proposes scrapping the Minimum Income Guarantee. The MIG has provided a much-needed means-tested boost to the income of many elderly people, the FSB says, but means testing is demeaning and the MIG is a disincentive to save. Terence O'Halloran, FSB pensions spokesman concluded: "The FSB submission is based on creative thinking and a broad church of opinion. To arrive at a long-term solution there needs to be more objective consultation between politicians, employers, employees and pension-providers in the future." This e-mail address is being protected from spam bots, you need JavaScript enabled to view it |
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