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”.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers