THE Federation of Small Businesses in the North-west has revealed plans for a second tier pension plan.

It has been developed nationally by the federation's taxation unit on behalf of more than 170,000 small businesses.

The scheme calls for the introduction of a second tier of pension provision with the existing National Insurance system, using With Profits funds managed by life assurance companies and friendly societies.

The federation has spent the past two years campaigning against the Government's introduction of stakeholder pensions, which it believes are proving to be a failure.