The proposal is aimed at making final salary schemes more sustainable for companies and was one of several new ideas revealed by Theresa May MP, shadow secretary of state for work and pensions, at the Confederation of British Industry (CBI) pension conference.
Speaking to an audience of leading pension scheme representatives, May added that the Conservatives are exploring new legislation that would encourage the setting up of more hybrid pension arrangements.
In keeping with recent comments made by other Conservative MPs, May also expressed concerns about the launch of personal accounts.
She made several references to the fear that a future government might face accusations of mis-selling, and concern over the poor track record of large government-launched IT projects.
She suggested that auto-enrolment be allowed for employers on a voluntary basis before 2012 and that employees should be allowed access to lump sums from their pensions, similar to the access allowed by 401k plans in the US.
If elected, the Conservatives have pledged to hold a review of personal accounts to consider these ideas and concerns.
