A number of employers have given defined-contribution pensions “a bad name” by cutting contributions after switching their occupational schemes from defined-benefit schemes, according to pensions minister Ian McCartney.
He was challenged by MPs on the committee about how the Government plans to prevent employers from reducing or stopping contributions when they move from DB to DC.
Labour MP committee member Andrew Dismore asked McCartney what action he planned to take to protect workers' pension rights.
McCartney said while the Government would not prevent employers from making the switch, it was working with employers to try to convince them not to do so.
He said: “Defined-contribution pensions should not be seen as an inferior model. They are an important part of pension savings. A number of employers in the recent past have given DC a bad name by cutting contributions.”