UK - NAPF chief executive Christine Farnish has lambasted the government over its delay in providing details on the pension protection fund (PPF).
The PPF, which was unveiled by the Government in June, is aimed at protecting accrued pension rights when a company goes into liquidation. The recent Queen’s Speech did not provide any additional details on the scheme.
Farnish said: “The first sign we will see any detail is in the face of the Pensions Bill which we are not going to get until the New Year. I just don't think that is acceptable for something that is so important as this.
“We haven't seen any detailed proposal from the government, nobody has, and yet we are six months on from when they said they were going to do this.
She explained: “What we heard in June from the government was very high level and I think it is very unfortunate that we are still waiting for proper consultation on detailed proposals of benefit levels and funding arrangements. And until we see the details, it is very hard for us to engage with government.
“The government having a series of private meetings with different interest groups is not the same thing as proper, open, transparent consultation on a set of proposals that people can really engage in and comment upon.”
She said that the lack of any details on the PPF made it very difficult for companies to budget and plan for the future.
“For companies, it’s not just the cost of the PPF, it’s that future cost that is uncertain and that's the killer. It’s hard for companies to budget and plan when they have uncertain liabilities hanging over them,” she added.
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