'Slap in the face'

Commenting on reports that the UK?s largest housing association Clarion is to hike employee pension contributions to 22.9 per cent a year, Unite regional officer Matt Freeman said today, (February 21),??This is a slap in the face to the hundreds of workers who have worked hard and paid into the defined benefit scheme on the promise of a secure income for life. With this hike Clarion?s is pricing members out of a decent pension and worse into poverty when they retire.

 

?Clarion knows full well that a hike of this scale is basically closure by stealth as many members will simply be unable to afford the estimated ?3,000 more a year it will take to stay in the scheme,” he added.

 

?While staff across the organisation face cuts to their pension, Clarion now employs 48 senior managers on ?100,000 a year or more ? an increase of 14 in a single year.

 

?It is even more unjust given that the burden is falling squarely on workers? shoulders with Clarion ? an organisation with an earned net surplus of ?154m last year – not increasing it contributions by a single penny,” Freeman went on to say.

 

?Unite will continue to push for an end to the 7.5 per cent employer contributions cap which is far from generous for such a financially strong organisation.

 

?This will enable Clarion?s management to contribute more to their hardworking employees? final pension pot.?

 

According to Unite, an employee earning ?30,000 a year would have to contribute an additional ?245 a month to stay in the group?s defined benefit scheme.