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TUC Congress: Defined-contribution pensions are not filling the gap left by closure of defined-benefit schemes

Two-thirds of the private-sector workforce is without a pension because defined- contribution (DC) pension scheme coverage is not good enough to fill the gap left by defined-benefit (DB) pensions, according to TUC Analysis.

Research, gathered for the TUC Congress debate on pensions, shows between 2005 and 2008 there was a 5% drop in people in the private sector who are DB scheme members but during the same period the increase in DC scheme membership was just 1.9%.

According to the TUC, this means the proportion of the workforce without a pension has risen from 54.6% in 2000 to 62.6% in 2008.

TUC general secretary Brendan Barber said: "The real scandal is that nearly two-thirds of private-sector workers are ‘unpensioned' - without any kind of employer-backed pension, even one with a tiny contribution from their boss.

"No wonder employer groups are so keen to attack public-sector pensions. It is a good diversion from the continuing retreat by employers from providing any kind of pension."