Catalyst has published plans to introduce a profits levy on listed companies, which could be used to fund a new Pension Reserve Fund. The group, which includes former labour leader Roy Hattersley and Lord Desai, Professor of Economics at the London School of Economics have published plans that would require public companies to issue new shares, equivalent to a certain proportion of profits each year to be held by a public pension fund. They believe that the asset levy scheme could plug the pensions funding gap without reducing companies' cashflow or investment plans.
Our view
As ever, the employer carries the burden. It is easy for former and current "state sponsored" pension scheme members to suggest these things. As with most other areas, it should be the fund and not the employer that shares the burden i.e. pools the risk.