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GMB and Colonial push compulsory pensions proposal but it may be too late

The GMB is promoting its own version of a compulsory stakeholder pension in alliance with trade union-backed Unity Trust Bank and life office Colonial.


But the proposal&#39s launch may be badly timed as it coincides with press revelations that stakeholder as it currently stands may be scrapped and any consideration of compulsion abandonned.


Colonial has extensive experience of mandatory pensions in Australia and the proposal borrows strongly from that system.


The proposal advocates a pension contribution based on ability to pay rather than ability to learn, the introduction of a single individual pension account, Government funding for low earners and those that act as carers and for contributions to be set at a minimum of 5 per cent earnings increasing over ten years to 10 per cent.

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