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Business groups urge govt to raise retirement agePosted by Randy on: 2005-09-27 07:20:45 in category:
Retirement Headlines [ Print | Permalink / 0 Comment(s) ] Business groups urge govt to raise retirement age Web posted at: 9/26/2005 2:58:40 Source ::: Reuters LONDON: Two of Britain’s top business groups renewed calls on Monday for a hike in the country’s retirement age to ward off a pensions crisis, setting the centre-left Labour government and unions on a collision course. The Confederation of British Industry, Britain’s biggest employers’ group, and the Institute of Directors want Britons to work longer as part of the solution for easing the inevitable strain on the public finances as the population ages. This month, 13 of Britain’s trade unions made an informal pledge of unity over pensions and the head of the main public workers union said a nationwide strike was “inevitable” if the government were to up the retirement age for civil servants. The calls from business come at the start of Labour’s annual conference Brighton where pensions will be a hot topic. Unions will also attack government plans for a greater role for the private sector in schools and hospitals. The government, which on Friday signalled Britain’s economic growth would probably fall short of this year’s 3.0 to 3.5 percent budget forecast, chose not to address the thorny pensions problem before last May’s election in which its majority was more than halved. Early in the year it threatened to raise the civil service retirement age to 65 from 60, only to incur the ire of public sector unions and retreated at the 11th hour when faced with a strike that may have seen 1.5 million people walk off the job. But CBI director-general Digby Jones will urge Trade Secretary Alan Johnson on Monday not to back down again. “The government must face down the unions and grasp the nettle on public sector pension reform. It will not get away with publicly declaring its intentions for a second time and backing down at the first sign of trouble,” Jones will say. Jones called raising the retirement age for civil servants to 65 “an important first step” as it would bring them in line with the private sector. “It is time the public sector unions stopped holding the government and the taxpayer to ransom, and got real on pensions,” Jones said. The IoD went a step further, proposing in a submission to a government-sponsored commission headed by Adair Turner to raise the retirement age to 70 by 2035. The IoD is also proposing the government reduce Stamp Duty on stock transactions for pension funds as well as an incentive to work longer by increasing tax-free lump sum. Homepage Other community sites http://www.business-business.biz Please support are sponsors. To design you custom retirement plan. http://www.retirement-plan.us For planing a IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management: National ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
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