would avert the worst consequences of the present pensions gap - which otherwise threatens to leave up to three quarters of pensioners reliant on means-tested handouts -without seriously taxing any rich people or big business.
His formula would mean a 25 percent increase by 2050 in the share of national wealth spent on state pensions - but at a time when numbers of pensioners are predicted to rise by 50 percent: in other words it is a meaner system than the present one, and its main initial benefits would be felt by the better-off.
With increased numbers of older people surviving claim a pension. and a rise in the average life expectancy (although little increase in the percent ... it is a meaner system than the present one the present jam, the problem is not their fault; many workers are still paid too little to stand any chance of saving for a respectable state or private pension.
Today's potential crisis has been caused by generations of inadequate contributions from British employers, compounded by the growing privatisation of the pensions svstem - with the connivance of the TUC and major unions - and the inherent instabilities and corruption within capitalism.
It is the system itself which is at fault. While Robert Maxwell notoriously stole the pension ot Mirror Group print workers and others, and major companies percentage of average earnings, while top bosses and nign carners - noladıy Including MPs, who can retire after 27 years on two thirds of their salary have secured extremely generous schemes that will protect them long
Gordon Brown's meanstested Pensioner Credit sets a minimum Income lot a single pensioner of just £109 per week - less that £5,500 per year, or just over 20 percent of average earnings: those who have always been poor are guaranteed to remain desperately poor in old age.
The employers have pockelea mucn or tne money that should have been available to pay pensions. Inland Revenue millions of workers being held in huge privately-run funds - adding up to more than tl trillion. and contro ling almost 30 percent of all the shares in Britain. Millions of workers were cheated by being mis-sold inappropriate pensions that will leave them
The private funds are subject to little if any accountability LUC workers whose savings they hold. The funds are in constant search of profits - and can wind up pressing companies to seek cost saving measures which axe jobs, hold down wages and undermine other sections of workers in Britain and around the world.
The reality is that the private pension funds have national-level employers to pay a much larger share of the costs. based on a turnover tax and/or a share of their pre-tax profits rather than the numbers of employees. Punitive fines and jail sentences for directors and top bosses who seek to evade contributions, or steal workers' pension savings.
• Scrap the celling on National Insurance contributions and increase taxes on high earners to force the rich to pay their full share of progressive lasalon
• Restore the link between state pensions and average earnings.
Cap the maximum allowable
WallacHicl charges on private pension schemes: nationalise any pension funds which exceed this Шах и.
• Elected trade union committees, with access to expert advice, to scrutinise the workings of all occupational pension funds.
page 12 of the scan
some key facts • The stock market boom of the early 1990's saw private pension funds grow massive surpluses. Companies, encouraged by government restrictions on large surpluses, either reduced their contributions or in some cases stopped making any contributions at all. It is estimated that companies collectively saved over £27 billion in 'pensions holidays.' • The British Chamber of Commerce, demanded recently that the government raise employee contribution he unds Tami Peterson
The until the National Insurance However, its compensation
Amicus members campaign against cutbacks in pension rights for private
sector workers