The Confederation of British Industry has attacked the TUC for suggesting a "tax on business" by calling for compulsory employer contributions to occupational pension schemes.

"We need a partnership between employers, the state and employees, backed up by legislation to ensure that millions do not spend their retirement in poverty," said TUC general secretary John Monks.

Forum Response: Help the Aged

Mervyn Kohler, head of public affairs at Help the Aged, told ePolitix.com: "It is unreasonable for employees alone to bear both the burden and the risk of providing for their pensions.

"A genuine partnership with employers and government is essential, and the trend amongst employers to abandon their responsibility must be halted and reversed."

Forum Response: Institute of Directors

Richard Baron, deputy head of the policy unit at the IoD, told ePolitix.com: "The IoD disagrees with the TUC proposal that employers should be required to contribute to employees' pensions. It would be an extra cost of employment, comparable to but much more severe than the increase in employers' national insurance announced in the Budget.

"It would only be acceptable if there were a matching pound-for-pound reduction in employers' national insurance. Otherwise, some jobs would simply become uneconomic.

"There is a case for compulsory saving, but saving by the employees who will be the beneficiaries in their old age. Meanwhile, the best thing the government could do would be to liberalise and simplify the rules on pensions and other savings products, so that people will become more willing to save."

Forum Response: Unison

A spokesman for Unison told ePolitix.com: "We believe that financial security in old age should be the right of every citizen. A cut in pension is a cut in deferred pay. The government should act as a matter of urgency and legislate to stop companies raiding pension funds by unilaterally changing the rules overnight and reducing employee benefits.

"Our pensions crisis is not just a problem for our members in private companies - the public sector, too, needs to wake up to what could lie in store if pension funds and pensions are not protected."

Forum Response: Association of British Insurers

A spokeswoman for the ABI told ePolitix.com: "It is important that we look at all the options in order to boost pensions savings and close the £27bn savings gap.

"Compulsion is one such option but it would be preferrable to explore how we can encourage people to save more on a voluntary basis, before we rush towards compulsion."

Forum Response: Age Concern

A spokeswoman for Age Concern told ePolitix.com:"Age Concern would encourage all employers to make contributions to pension schemes to give their employees a better chance of providing for their retirement.

"We agree with the TUC that there needs to be a shared responsibility between the state, employers and individuals in retirement provision and support their call for a national debate on how to address the current pension crisis. Central to this must be a commitment to an adequate basic state pension to provide a firm foundation on which to build up occupational pensions and other types of saving for retirement.

"Age Concern would not support the principle of making pension scheme membership a condition of employment or increasing the compulsory level of contributions to a second pension at a time when many people are unsure about pensions and lack confidence in the current schemes.

"People need to be in a position to make informed decisions about their future but we believe that at present many would object to being forced to contribute more to pensions schemes."

Forum Response: National Association of Pension Funds

A spokeswoman for the NAPF told ePolitix.com: "Employers provide pension schemes entirely voluntarily. The NAPF would like to see better incentives for companies to offer pension schemes.

"It is unrealistic to force employers to make contributions to occupational pension schemes. If the contribution level is set too high, employers will be less competitive and some may even be forced out of business.

"If the contribution level is too low, people may be lulled into a false sense of security about their pension provision. If the government offers adequate financial incentives more people will be encouraged to provide, and take up, occupational pension schemes."

Forum Response: GMB

John Edmonds, General Secretary of GMB, told ePolitix.com: "Without a compulsory employer contribution pension scheme, British workers will be left to live in poverty after a lifetime of work.

"We do not accept the argument that due to the current performance of the stockmarket, employers are being forced to close good pension schemes. When times were good, they took a financial break and now that times a rocky thay want a permanent solution to a short term problem."