UK - Trustees have been urged not to prolong the life of stricken schemes in the mistaken belief members will miss out on compensation.
Lawyers say trustees have been reluctant to “put a scheme to bed” since the government’s £400m compensation package was unveiled in May for fear it would disenfranchise members from assistance.
But the department for work and pensions said this would not be the case and trustees should proceed with wind-up arrangements in the knowledge members would be covered.
Head of the DWP’s financial assistance scheme Mike LeBrun gave the clearest indication yet of the shape of the £400m rescue package at a Higham Group breakfast briefing.
Higham partner Russell Agius said that even though details had not been finalised, this was a clear encouragement to trustees.
He said: “This is the first time we have had clarification in a public forum and I’m sure the industry will welcome it. There is currently so much uncertainty for trustees involved in wind-ups, it is good to receive this reassurance from the DWP.”
But a leading lawyer believes details are still lacking.
Hammonds partner Francois Barker said: “This still looks to be an idea without much detail. Early indications are it is not going to be very generous – offering far less than the PPF – and may be politically skewed to benefit those most in need and who present the biggest challenge to politicians.”
LeBrun told the forum that schemes which began winding up before 1997 would not qualify for assistance, and that schemes which began after May 14 would also not qualify.
Ex-BHS owner Dominic Chappell has been ordered to pay a total of £87,000 in fines and court costs after he was found guilty of failing to provide The Pensions Regulator (TPR) with information.
The Department for Work and Pensions (DWP) has said it while believes in the benefits of consolidating defined benefit (DB) schemes, there are significant issues to overcome.
There is just one week left to register to enter the Workplace Savings and Benefits Awards 2018.
Nearly a third (32%) of employers believe new technologies, such as augmented and virtual reality, will play a part in benefits communications, latest research from Aon Employee Benefits reveals.