UK - Scheme members who have had their pension benefits cut under "Bradstock-type" deals will not be in line for compensation announced by the government.
Ministers bowed to pressure from Labour backbenchers and the Pensions Action Group and unveiled a £400m package to compensate scheme members who lost pension savings when their firms folded.
But the government insists victims of “Bradstock-type” deals – where trustees have agreed to waive deficit payments because forcing the sponsoring employer to pay could put the company at risk – will not be compensated.
A spokesman for the department for work and pensions said: “If trustees have reached a negotiated settlement with the sponsor, this will not apply. This system was not designed for solvent employers.”
Hewitt Bacon & Woodrow principal consultant Raj Mody said that if the £400m compensation fund was to have a “material impact”, some cases would have to be excluded, no matter how deserving.
He said: “I welcome the government establishing the compensation fund, but my general worry is that once you have signalled that cash is around, where do you draw the line?.”
The Next Generation Pensions Committee is on a mission to promote and encourage younger voices in the industry. Kim Kaveh looks at its key objectives
This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.
Employers whose dividend to deficit recovery contribution (DRCs) ratios fall outside the "normal range" should expect to see higher regulatory scrutiny, although no fixed ratio will be set.
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.