On the go: The Scottish National Party will support moves to ensure executive pension contributions are the same as for all workers.
In its manifesto, published today, the party quoted figures from the Investment Association, which showed shareholder pressure has resulted in 30 per cent of FTSE 100 companies pledging to cut executive pension contributions.
The SNP stated that while it supports the sector’s call for companies to set out plans to align executive pension contributions with those of other workers, it will go further and back “calls for this to be extended to all staff and put on to a statutory basis”.
In November 2018, the IA published its principles of remuneration, which set out investor expectations on executive pay and highlighted high pension contributions as a key concern.
The trade body stated that pension-related payments should not be used as a mechanism for increasing total remuneration, and that pension contribution rates for executives should be aligned with those of the workforce.
Several companies, such as Lloyds Banking Group, HSBC and Standard Chartered have been under fire due to the pension contributions paid to their executives.
The SNP is also pledging to call on the UK government to take steps to extend auto-enrolment, so that “more low-paid and self-employed workers can benefit from regular pension savings”.
The party will also support the establishment of an independent savings and pension commission, to “ensure pensions and savings policies are fit for purpose and reflect the demographic needs of different parts of the UK”, it added.
The SNP will also oppose the current plan to increase the state pension age, and pledged to maintain the triple lock. The party will support campaign groups such as Women Against State Pension Inequality “in their efforts to secure fairness for the women affected” by an increase in the state pension age.
