Memorandum from Barnardo's
Let me take this opportunity to deal with one
specific question, "In what ways do other Government policies
such as the New Deal help or hinder older workers, especially
unemployed job seekers?"
My major concern as an occupational pensions
manager and member of my organisation's human resources management
team is how we can retain older workers and I believe that the
major hindrance is the way in which Government policy allows one
set of workers to take a pension and continue to earn a salary
and not another. Currently, those employees who joined the pension
scheme before 1 June 1989 can take their pension at normal pension
age and continue to work for the same company and earn a salary
as well. The same rule does not allow those employees who joined
the pension scheme after 1 June 1989.
The solution to this dilemma is, I believe,
to allow everyone from the age of 55 to take their pension and
also earn a salary if that is what suits them with the safeguard
that they can't rejoin the pension scheme as an active member.
The Treasury seems to have real difficulties with this scenario
yet there is no loss of tax revenue, indeed there is an enhancement
as both the pension and salary are taxable.
It is surely in no one's interest that for this
to happen currently, a person must take their pension from one
employer and seek employment with another. The retention of experienced
and highly trained staff must be the preferred route.