UK - Employers looking to close their final salary pensions provision must analyse the contribution rules of the scheme, warns Wragge & Co.
Head of pensions Glyn Ryland said that scheme sponsors could find themselves liable for compensation if they do not understand these rules, which set out the obligation of the employer to the trustees.
He explained: “In modern final salary schemes, most contribution rules give most of the power to the employer, subject to the Pensions Act.
“But, older schemes often contain an employer contribution rules which gives some or all of the power to the trustees or the actuary.”
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Frank Field is to warn Sir Philip Green not to sell his Arcadia business without ensuring defined benefit (DB) pensions are adequately protected, PP can confirm.
Some 79% of people would like to see stricter rules and checks to ensure pension pots are secure, according to a survey by the Pensions and Lifetime Savings Association (PLSA).