Calls for firms to give workers annual increase to their pension

COMPANIES should “pay up” and give workers annual increases in pension payments in line with inflation, a Labour former minister said.

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Dame Nia Griffith said many pensioners have been treated “very shabbily” as she urged the UK Government to close a loophole in the Pensions Act 1995 which allows employers to reject inflation-based rises.

MPs scrutinised pension reforms brought forward by the UK Government, which aim to secure higher returns for savers.

Work and pensions minister Torsten Bell said: “The case for this focus is clear - those retiring in 2050 are currently set to do so with lower private pension income than those retiring today.”

The Pension Schemes Bill aims to provide pension schemes with a wider range of assets to invest in and will allow some to transfer to so-called “superfunds”.