UK/US - Trustees should look to the US for practical lessons on how to safeguard investments and protect pension fund assets, lawyers claim.
Hammonds solicitor Frances Phillips Taft and McDermott, Will & Emery head of pensions and incentives, Steven Hull, told an Association of Pensions Lawyers seminar that Britain and the US had a lot to “learn from each other”.
They said: “The bankruptcy of Enron and accompanying loss of Enron employees’ retirement savings has highlighted the vulnerabilities in the private pension system in the United States and focused attention on strengthening several aspects of the system.”
The APL heard that Enron had highlighted the importance of:
- Investment diversification and related investor education issues.
- The crucial role of disclosure and what information employees needed and could expect about their company and their pension plans.
- The importance of fiduciary rules in safeguarding employee pension assets.
They said the Enron scandal prompted many calls for reform which President Bush acknowledged by initiating a review of pension law.
“The UK has, to an extent, already had to deal with similar issues as a result of the Maxwell scandal.
“Nevertheless, Enron increased the profile of pensions in the media and in the public’s awareness at a time when the so called ‘pensions crisis’ has resulted in calls for reform of the UK pensions system.”
Hyperbolic discounting and political temptation: Why Brexit-fuelled AE reversal would be a 'monumental' mistake
The home secretary has suggested AE should be scrapped in the event of a no-deal Brexit. Darren Philp explains why this would be misguided
The trustees of the Kodak Pension Plan No.2 (KPP2) have said it will likely enter the Pension Protection Fund (PPF) in "due course" after reviewing the scheme's investment in Kodak Alaris.
A US company has completed a £285m pensioner bulk annuity for around 1,100 of UK members with Legal & General (L&G).
Former BHS chief Dominic Chappell has been accused of trying to rewrite history as he seeks to overturn a conviction for failing to hand over information to the regulator.