A director of a top U.K. company can retire at 60 with an average annual pension benefit of £193,000 ($389,000) 25 times that of an average U.K. occupational worker, according to a union report. The Trades Union Congress annual PensionsWatch survey of 102 top companies shows directors have amassed benefits worth a combined £891 million.
Also, employers contributed roughly 20% to directors defined contribution plans, while contributing just 5.8% to the average employee plan.
The report found that 59% of companies surveyed closed defined benefit plans to new staff in recent years, and that on average it takes workers 40 years to reach full pension while it takes directors half as long.
On the basis of these findings, the TUC is calling for greater clarity and reporting on pensions, in line with the disclosures required on pay, bonuses and other benefits for senior executives, according to the report. In addition, companies should make clear any differential treatment for directors. The TUC recommends that directors and employees should be members of the same schemes, on the same terms.