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FDs back compulsory pensions. By Dan Martin

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17th Mar 2006
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The majority of UK finance directors support compulsory employer pension contributions, new research reveals.

The report the Institute of Chartered Accountants in England and Wales (ICAEW) found 81% of finance directors and chief financial officers were in favour of auto-employee enrolment in pension schemes and compulsory employer contributions.

Another two fifths said if contributions did become mandatory they would adjust employee salaries.

In addition, half of the chartered accountants also polled backed the view that employers, employees and the state should contribute equally to a national scheme with a minority not supporting compulsory employer payments.

Following proposals from Lord Adair Turner's pensions commission, the government is currently considering whether to introduce a nationwide pensions savings programme with obligatory employer contributions.

Eric Anstee, ICAEW chief executive, said: 'Doing nothing about retirement provision is not an option. We can't put off tackling this problem by leaving it for future generations.

'Employers, employees and politicians together need to take some tough decisions about how we fund pensions in the future.

'The clear message from our members is that any solution cannot be optional. Employers cannot abdicate responsibility and it will fall to them and to government to take the lead in encouraging individuals to save for their retirement.

'Our members broadly support the thrust of the pensions commission proposals and believe they represent a strong starting point for debate. However, more needs to be done by government.

'One aim of government policy moving forward has to be to restore confidence in the pensions system. This will require agreement and consensus, not only between government departments, but across the political spectrum.'

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