UK - The department for work and pensions is having to redraft its latest pensions proposals after it emerged there was a "typographical mistake" in the documentation.
The error – identified by the Pensions Advisory Service – lies in the section, Improving Member Protection.
Clause 2.13 states that employers should ensure there are sufficient funds to meet the full costs of members’ accrued rights for schemes that “are winding-up on, or that start to wind-up after, the day on which the draft regulations are issued”.
This reading means that employers currently winding-up their schemes, such as Maersk, would be forced to make up the shortfall in their funds.But it has emerged this was unintentional and is being rethought by the DWP.
Instead the solvency promise should only apply to companies that choose to wind-up their scheme after July 11 – the issue date of the draft regulations – leaving thousands of affected members with no respite.
A DWP spokeswoman said: “In the part of the document we are referring to, there was a typographical error.
“We are in the process of making a correction to that. And we are currently trying to assess what is the best way of doing this.”
OPAS chief executive Malcolm McLean said he was not surprised at the change to the document, but stressed that it was an “unfortunate” situation for those members who are to lose out because of employers failing to meet their “pensions promise”.
Investors, driven by depressed interest rates, slower global economic growth and rich equity market valuations are examining non-traditional investment opportunities.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up