Invalidity pensions
Sir: Custos (May 20) quotes from DIG's annual report a passage which is critical of the Government's new pension plan, and questions whether the criticism is justified. The point at issue is simply one of parity or fair play. Employees will be required to save for their own retirement by contributing either to a company pension scheme or to a state sponsored 'reserve scheme.' But not a penny piece of this saving can they claim until the normal retirement age if they are invalided out of employment prematurely. Except, that is, if they die, for then a widow's pension will be payable. Two can live more cheaply than one, it seems. Of course, many company schemes voluntarily give a generous early retirement pension when a member's health breaks down. But the Government thinks it impracticable to compel the private sector to do this and the state reserve scheme must therefore ignore the problem. And yet invalidity is pensionable in the same way as retirement in most of Europe. In Sweden for instance invalidity . pensions are a feature of all insured and privately funded company schemes. The Government, to the best of our knowledge, has not even suggested to the pensions industry in the United Kingdom that this is a benefit that could and should be provided under company schemes. Nor has the Opposition raised the matter so far. The battle would be lost without' a shot being fired were it not for DIG.
Stewart Lyon Chairman, Management Committee,
Disablement Income Group, Godalming, Surrey
Previous page
