The National Association of Pension Funds (NAPF) has showed its support of plans to get rid of £9 billion in rebates that go into company and private pension schemes.
The association said the money would be better spent in a bid to provide a more generous, non-means tested, basic state pension.
It has further defended its proposal to scrap the state second pension.
However, the chairman of the government's Pensions Commission, Adair Turner, said that scrapping the system would seriously reduce private savings for UK pensions.
Speaking to the Financial Times, he marvelled at the timing of the move when the government is urging people to save more for their retirement pensions.
This comes after the publication of research by corporate investment bank RBC Capital Markets Open Market Forum that shows the largest companies in the UK failed to reduce any of their pension schemes deficits last year.
Study leader and UK pension consultant John Ralfe believes some companies are doing little more than trying to plug pension deficits with high levels of equities.
But he warned that this "hoping for the best" attitude is no substitute for increasing contributions to pension schemes.
The NAPF is the leading voice of workplace pension provision in the UK.
Some 10 million working people are currently in NAPF member schemes, while around 5 million pensioners are receiving valuable retirement income from such schemes.
NAPF member schemes hold assets of some £700bn, and account for around one sixth of investment in the UK stock market.
NAPF comments on pension schemes
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NAPF comments on pension schemes
Tue, 12 Jul 2005
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