In a government report pensions expert Alan Pickering has urged the easing of red tape on firms offering employee pension plans.

The former chairman of the National Association of Pension Funds said: "Payouts from company pensions should no longer be forced to rise in line with inflation."

He urged instead that responsibility for saving should be switched to workers, who could be forced to join company pension plans.

A sell out of millions of workers Roger Lyons, Amicus general secretary

"Employers should be allowed to make membership of their pension scheme a condition of employment," the report said.

The moves are aimed at bridging a savings gap, estimated at �27bn a year, and come ahead of a government consultation paper on pensions set to be published in the autumn.

In a statement to the House of Commons, work and pensions secretary Andrew Smith welcomed the report, describing it as "radical, ambitious and pragmatic".

However, Mr Smith said the government would look at the proposals to end compulsory indexation but he added: "On the first reading these proposals are not attractive."

Lower payouts?

Many of the ideas in the report are likely to prove controversial, including a proposal to ditch obligations to pay benefits to pensioners' widows - a measure seen as a gender equality breakthrough when it was introduced.

Pickering's key suggestions

End of inflation link for company pensions Easier for people to accumulate pensions Private pension laws scrapped A new pensions act Get rid of red tape Fewer types of pensions Give employers more freedom to design their own pensions Less government interference

"In the modern world, many couples would prefer to... ensure they both have an independent income in retirement rather than relying on derived rights," the report said.

The document also admitted that, with company pension schemes freed from some performance constraints, final payouts could be lower.

"We acknowledge that... the guaranteed future pension benefits for those in pension scheme may be scaled back somewhat," the document said.

Robert Maxwell conspired to raid the company pension fund

But while some observers have raised concern about the relaxation of pensions red tape tightened, in part, after the 1990 scandal in which Robert Maxwell raided the Mirror pension fund, Mr Pickering attempted to ease fears of further crises.

"If there were to be another Maxwell, he would have an easy way in," Mr Pickering told reporters.

"All he would have to do is hide under a mountain of red tape and no-one would see him coming."

Mr Pickering proposed "new kind" of regulator, acting as adviser as well as watchdog.

"The regulatory regime should place greater reliance on professionals exercising and backing their judgment," the report said.

This will help employers run and maintain schemes and encourage more people - including the self employed - to save for retirement Joanne Segars, ABI

Joanne Segars, head of pensions at the Association of British Insurers, welcomed the proposals.

She said: "Alan Pickering's ideas for a simpler pensions framework will help Britain to save. This will help employers run and maintain schemes and encourage more people - including the self-employed - to save for retirement."

Already, some unions have criticised the report's suggestions.

Amicus general secretary Roger Lyons described the report as a "sell out of millions of workers".

"Removing the obligation on employers to increase pension benefits with prices would inevitably lead to pensioner poverty in the long term and removing survivor benefits would be a disaster for practically every couple in the country," he said.