Business leaders will today attack the government's proposed pension protection fund.

CBI chairman Richard Greenhalgh has accused the government of making employers "the villains of the pension piece".

Speaking at a CBI conference on pensions, he said: "The entire burden [of pension provision] will be placed on employers while the government refuses to share any risk."

A spokesman for the DWP said: "We're pleased that the CBI welcomes the spirit of the principles of the PPF as an important measure in maintaining confidence in occupational pensions. We look forward to working with the CBI on the detailed specifications of PPF."

Forum Response: Institute of Directors

Derek Brownlee, pensions executive at the Institute of Directors, said: "The IoD supports the principle of the Pensions Protection Fund but has reservations.

"If employers are forced to pay the premiums, then it will lead to a further decline in the provision of defined benefit pension schemes. As we argued when the PPF proposals were announced, companies should be able to pass the cost on to the employees if they choose - so we are on common ground with the CBI on that.

"Where we disagree is on the issue of the government underwriting the PPF. We don't see why taxpayers should fund - even as a last resort - a scheme to guarantee generous pensions to one group of people when many taxpayers have either an inadequate pension or none at all.

"Rather, we would like to put the scheme on a sounder basis by extending the PPF levy to the public sector, where huge pension liabilities which wouldresult in a PPF levy if they were in the private sector are being quietly ignored in the knowledge that if things go wrong the taxpayer will foot the bill."