UK - British employers would significantly reduce the burden of their ‘pension promise' if they could pay the government to take contracted-out liabilities back into the state scheme, David Willetts (pictured) MP has argued.
Proposing a government-sponsored arrangement which would remove a significant part of the pension promise from the company’s balance sheet, the Havant MP and senior adviser to Punter Southall said: “If companies are able to pay the government to take back the obligation to pay a guaranteed minimum pension then this could be a significant step forward in capping their pension costs and reducing liabilities.”
Under the proposal, schemes would be encouraged to contract out by means of a rebate of part of the employee and employer National Insurance (NI) contributions, paid directly into the pension scheme.
Urgent steps were necessary, the former shadow secretary for work and pensions said, to prevent the emergence of “zombie companies struggling to pay their pension costs, incapable of expanding and too toxic to be taken over.
“This is bad for British business and bad for the British economy,” he continued. “Even if it is not a challenge that Adair Turner will address it is something that all of us who care about the future performance of the British economy need to focus on.”
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.