Amicus has called on the government to introduce compulsory retirement provision to try to ease the looming UK pension crisis.

Under the Amicus plans employees would pay 5% of their pay into a pension while employers would pay in 10% of the worker's wage.

The union argued that the cost of doing this should be weighed against the substantial reduction in the number of pensioners who would rely on state benefits.

Business costs

Speaking at a union pensions conference, Amicus leader Derek Simpson said: "The argument for the minimum pension is clear.

"There should be a commitment by employees, but employers must be compelled to make minimum contributions to their employee's pensions regardless of structure."

Mr Simpson argued that business competitiveness would not be harmed as a minimum pension contribution requirement would be introduced across the board.

However, the CBI told BBC News Online that the move could cost business �29bn ($45.4bn) a year, hit smaller companies hardest, cause job losses and erode UK competitiveness.