CBI opposes sweeping reform of pensions

THE Confederation of British Industry does not believe any fundamental reforms are needed in reponse to the Maxwell pensions debacle, limiting its demands to effective regulation within the existing system, writes Paul Durman.

In its response to Professor Roy Goode's review of pension law, the CBI is anxious to avoid imposing additional costs on employers or restricting their 'flexibility' over the pensions they provide to their employees.

The CBI said it 'understands and sympathises with public concern about the implications of such a serious breach of pension scheme security, but believes the Maxwell revelations must be set against the good record of around 460,000 occupational pension schemes, with assets of around pounds 320bn covering 11 million people'.

Sir Brian Corby, the CBI's deputy president, said the organisation recognised the strong pressure for a pensions compensation scheme. 'If such a scheme is introduced it should be in respect of fraud only and should not cover poor investment or underfunding,' he said.

The deadline for submissions to Professor Goode is tomorrow.