UK - Compensating workers who lost pension entitlements when their firms collapsed would be too expensive, pensions minister Malcolm Wicks said.
Wicks – speaking at the government’s pensions summit – told members of collapsed schemes that the government could not “hold out a blank cheque for fear it would provide a perverse incentive to a company to close its scheme”.
Wicks heard emotional pleas from workers, including those from ASW, who had lost up to 90% of their pension entitlements after making contributions for more than 30 years.
But Wicks said the government could not afford to change its mind. Doing so, he said, might encourage some employers to drop their pension commitments and “force the government to pick up the tab”.
His comments angered Amicus and the Iron and Steel Trades Confederation unions, which are taking the government to court over its failure to implement a 1980 European pensions protection directive.
ISTC spokesman Ken Penton said: “The government has a moral and legal responsibility to compensate.”
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.