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Fat cat pension pots reach 3m in 2007

Despite corporate cost cutting in the wake of the credit crunch, pension contributions for directors are on the increase according to the TUC sixth annual pension survey.

The PensionsWatch study of 346 company directors reveals that average employer contributions for directors was £91,700 for 2007 up from £86,000 on 2006 with top directors on the highest pension payments receiving an average employer contribution of £149,600.

Findings show that average pension of directors in Britain’s top companies was more than £200,000 in 2007, with average ordinary workers receiving £8,100.

Top bosses amassed pension pots averaging at £3m, providing an annual pension of £201,700 a year. This figure represents 25 times the average workplace pension of an ordinary worker.

Directors with the greatest entitlements at each company had average pension pots of £5.2m which yielded an annual pension of £333,400.

TUC is calling for greater clarity and reporting of pay, remuneration and pensions so that investors have the information they need to scrutinise the awards made to directors.

TUC general secretary Brendan Barber says: “As ordinary workers have their pensions schemes closed and are expected to work for longer, the UK’s top bosses are avoiding this collective belt tightening and retaining their gold-plated pensions.

“Many of the most lucrative pension arrangements are shrouded in secrecy, making it hard for investors to scrutinise them and ensure that bosses are accountable. If top directors can really justify their rewards they must be bolder in declaring their pay and pensions to investors and their staff.”

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