The pensions snare

The first phase of what looks like becoming a long‐term incomes policy — the £6 pay rise ceiling — has alarming implications for companies who are working to bring employee occupational pension schemes up to the level of earnings related benefits laid down by the new Social Security Pensions Act. For unlike previous pay restraint policies, any increase in employees' pension contributions will count as part of the £6 ruling. Here, John Elbourne — of Legal and General Assurance Society — urges the Government to re‐consider their ruling.