Menu
07/04/2005
Pension Protection Fund launches
A scheme to protect employees' pension schemes in the event of their employer declaring bankruptcy has been launched.
The Pension Protection Scheme will pay compensation to members of eligible defined benefit pension schemes, where there is a qualifying insolvency event in relation to the employer as well as in cases where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation.
The Pension Protection Fund will be funded through compulsory levies on all schemes that are eligible for Pension Protection Fund compensation. When a scheme transfers into the Pension Protection Fund, the remaining assets of that scheme will also be taken in by the Pension Protection Fund.
Chair of the Pension Protection Fund, Lawrence Churchill, said: "The Pension Protection Fund has an important role to play in the changing pension landscape and in restoring confidence in occupational pensions. It will, for the first time, provide a level of security for members of defined benefit and hybrid occupational pension schemes, giving them reassurance that meaningful compensation will be paid even if their employer goes bust. "
However, the Confederation of British Industry (CBI) warned that the success of the Pension Protection Fund depended on it recognising the likely risk of a company becoming insolvent.
CBI Chief, Sir Digby Jones said: "Businesses at most risk and most likely to call on the Pensions Protection Fund, should pay more. The Fund could be in trouble if a proper risk-based approach is not swiftly implemented. Business must not face an ever increasing cost burden."
Sir Digby added: "We need to review the new system to see that it acts in the best interests of employers and employees. The government has acted decisively to protect members' benefits. The priority must now be to improve the environment for employers who voluntarily provide pensions and create a climate which encourages others to follow suit."
(KMcA/SP)
The Pension Protection Scheme will pay compensation to members of eligible defined benefit pension schemes, where there is a qualifying insolvency event in relation to the employer as well as in cases where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation.
The Pension Protection Fund will be funded through compulsory levies on all schemes that are eligible for Pension Protection Fund compensation. When a scheme transfers into the Pension Protection Fund, the remaining assets of that scheme will also be taken in by the Pension Protection Fund.
Chair of the Pension Protection Fund, Lawrence Churchill, said: "The Pension Protection Fund has an important role to play in the changing pension landscape and in restoring confidence in occupational pensions. It will, for the first time, provide a level of security for members of defined benefit and hybrid occupational pension schemes, giving them reassurance that meaningful compensation will be paid even if their employer goes bust. "
However, the Confederation of British Industry (CBI) warned that the success of the Pension Protection Fund depended on it recognising the likely risk of a company becoming insolvent.
CBI Chief, Sir Digby Jones said: "Businesses at most risk and most likely to call on the Pensions Protection Fund, should pay more. The Fund could be in trouble if a proper risk-based approach is not swiftly implemented. Business must not face an ever increasing cost burden."
Sir Digby added: "We need to review the new system to see that it acts in the best interests of employers and employees. The government has acted decisively to protect members' benefits. The priority must now be to improve the environment for employers who voluntarily provide pensions and create a climate which encourages others to follow suit."
(KMcA/SP)
Related UK National News Stories
Click here for the latest headlines.
24 February 2009
Union Members Protest Against Post Office Part-Privatisation
Hundreds of postal workers are staging a protest against Government plans to sell off 30% of Royal Mail. Members of the Communication Workers Union (CWU) from across the country have gathered at Westminster before they will lobby MPs as part of a campaign against part-privatisation.
Union Members Protest Against Post Office Part-Privatisation
Hundreds of postal workers are staging a protest against Government plans to sell off 30% of Royal Mail. Members of the Communication Workers Union (CWU) from across the country have gathered at Westminster before they will lobby MPs as part of a campaign against part-privatisation.
14 May 2004
£400m fund boost for pensions lost by insolvencies
New proposals to create a £400 million fund to support workers who have lost their pensions have been unveiled today by Pensions Secretary, Andrew Smith.
£400m fund boost for pensions lost by insolvencies
New proposals to create a £400 million fund to support workers who have lost their pensions have been unveiled today by Pensions Secretary, Andrew Smith.
06 February 2006
TUC launches fund manager survey
The Trades Union Congress has launched its 2006 Fund Manager Voting Survey. The survey asks how investors voted on key issues at company AGMs last year. The survey provides pension fund trustees with information about how managers are addressing governance issues at the companies they invest in.
TUC launches fund manager survey
The Trades Union Congress has launched its 2006 Fund Manager Voting Survey. The survey asks how investors voted on key issues at company AGMs last year. The survey provides pension fund trustees with information about how managers are addressing governance issues at the companies they invest in.
20 February 2006
CBI warns employer compulsion is wrong answer
The CBI today has unveiled proposals to help tackle the UK's emerging pensions crisis without compelling business to contribute to staff pension schemes. The employers' organisation argued, in its submission to the Government, that enrolment without compulsion is the best way of increasing pensions saving without undermining existing provision.
CBI warns employer compulsion is wrong answer
The CBI today has unveiled proposals to help tackle the UK's emerging pensions crisis without compelling business to contribute to staff pension schemes. The employers' organisation argued, in its submission to the Government, that enrolment without compulsion is the best way of increasing pensions saving without undermining existing provision.
06 July 2011
Radical Pension Changes To Affect Local Businesses
Private sector employers need to take action now to prepare for a significant overhaul of employee pension provision or face playing catch up on one of the biggest issues to impact the business community for decades, according to a leading UK pension’s expert.
Radical Pension Changes To Affect Local Businesses
Private sector employers need to take action now to prepare for a significant overhaul of employee pension provision or face playing catch up on one of the biggest issues to impact the business community for decades, according to a leading UK pension’s expert.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
