Retirement age will not be raised, promises Johnson

Tuesday, 14 September 2004 12:00 AM

Work and Pensions Secretary Alan Johnson has assured the TUC that the Government will not raise the retirement age.

"This Government will not raise the State Pension Age. This Government will not force people to work to 70 years of age", Mr Johnson insisted.

Mr Johnson was making his first speech as Secretary of State for Work and Pensions, following his appointment to the post last Wednesday, in the wake of Andrew Smith's resignation on Monday.

A former general secretary of the Communication Workers' Union, Mr Johnson is the first union leader to enter the Cabinet for around 40 years.

Nevertheless, Mr Johnson acknowledged that working for longer has a role to play in addressing the pensions crisis.

"Our approach is to give people greater flexibility to make decisions about when and how long to work.

"Our Age Discrimination Legislation, combined with State Pension Deferral, will break the cliff-edge between work and retirement and give people greater opportunity and greater rewards for working longer if they wish to do so", he declared.

He pointed out that this year's Finance Act has already implemented arrangements whereby workers can continue to work for their employer while drawing their occupational pensions - the subject of a TUC debate on Tuesday morning.

Mr Johnson also announced that the Government will take up powers under the new Pensions Bill to ensure that 50 per cent of pension fund trustees are member-nominated.

His comments were welcomed by the TUC's general secretary Brendan Barber. He branded them "a victory for union pensions campaigning."

Mr Barber said: "We welcome the clear rejection of the employer lobby's proposal to raise the state pension age to 70. This work till you drop call would have led to many low paid workers dying before they claimed their pension."

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