BUSINESS leaders fear a "triple whammy" following the introduction of new company pensions legislation.

Pensions Minister Malcolm Wicks met members of the Confederation of British Industry (CBI) in Sunderland yesterday to outline his plans for reforms to company pensions.

Under the Pensions Protection Fund, companies with final salary pension schemes will pay an extra £20 a year for each employee.

The money will ensure workers at companies that collapse do not lose their pension.

Steve Rankin, CBI regional director, said: "Members feel it is unfair that companies with well-managed schemes will have to pay a levy in order to bail out the pension funds of companies that are badly run."

He said his members did not want to see pension schemes forced on them. They were also angry that there was no public sector pension fund - all retired government workers are paid from taxation.

"The corporate sector is effectively funding public sector pensions," said Mr Rankin.

"The public sector is putting more and more of its service delivery in the private sector, which is inheriting these underfunded pension liabilities.

"This is a potential triple whammy that will be a burden on the private sector."

Pensions Minister Malcolm Wicks said the scheme would be risk-assessed, so companies with solid pension funds would pay less.