UK – A split has emerged over company attitudes to occupational pensions - with a call for compulsion from engineering employers at odds with Confederation of British Industry policy.

The Engineering Employers Federation released a survey of manufacturing companies which found that 68% of respondents now support some element of employer pensions compulsion – up from 50% in 1998.

The finding drew a negative reaction from the CBI, which represents broader UK industry. It said compulsion could cost firms up to 22 billion pounds (31.8 billion euros) a year and would be seen as a tax on jobs.

"We understand that pension compulsion may suit the engineering sector specifically, but this does not mean it is the answer across the entire economy and could in fact do more harm than good,” said deputy director general John Cridland.

"Engineering companies are more likely to have pension schemes than business as a whole, so it is unsurprising that they would favour other firms doing to same. But this is not a view that would be shared by the majority of UK businesses.”

David Yeandle, the EEF’s deputy director of employment policy, said: "It should not be a surprise that a growing number of manufacturers with occupational pension schemes feel that, on grounds of competitiveness, there should be more of a level playing field for employer pension provision.

"However, this is a complex area and further compulsion could not be contemplated by manufacturers unless they see it as part of a satisfactory long-term solution to future pensions policy"

The EEF is setting up a pensions strategy group early next year to be chaired by a senior executive from a member company “to examine future pensions arrangements in the UK”.