NAHLM welcomes government plans for pension schemes

The trade union representing pub managers has given a cautious welcome to new government plans to protect pension schemes.

Peter Love, national officer for the National Association of Licensed House Managers (NAHLM) said the new Pension Protection Fund, an insurance safety net which protects employees' pensions if their employer goes bust or closes a company scheme, is "a step in the right direction".

However, Mr Love said that many pub companies employees are still very concerned about the number of companies ending final salary pension schemes, due to the so-called 'pensions black hole' in the UK.

The proposed changes mean employers who wind up solvent pension schemes will have to compensate workers in full for payments made. But, in return for enhanced rights, retired pension scheme members will see smaller income rises in future.

Mr Love said: "This is definitely a step in the right direction, and will be welcomed by employees. But there are still a lot of people who hare very worried. People who work hard have a right to expect a decent income in retirement, and they need the government to protect their rights."

Pensions minister Andrew Smith described the proposals as a "balanced package'.

"This strengthens protection for scheme members while reducing the burden on companies who run schemes," he said.

"The new Pension Protection Fund will ensure that where company pensions have been promised, pensions will be delivered."

The combination of falling stock markets, low interest rates and an ageing population have left UK pension funds short of cash, prompting many firms to end final salary protection for current employees.

The government also plans to appoint a Pensions Regulator to protect consumers from "badly run and high-risk schemes," but promised there would be no "unnecessary regulatory burden" on companies.