UK - Unclaimed pension assets may be up for grabs following the outcome of a Department for Work and Pensions (DWP) review into the best way of helping bankrupt schemes.
Speaking to the House of Commons today, secretary of state for work and pensions, John Hutton, said the review would identify ways of handling failing pension schemes which followed the chancellor’s announcement on increasing FAS funding last week.
He continued “Having now settled the public expenditure support for these schemes, I have today set up a review to determine if these sources of funding could be used to increase assistance for affected scheme members.”
It would seem likely that any scheme for the redistribution of assets would be carried out by the Pension Protection Fund (PPF).
A PPF spokesman told Global Pensions: “This is a matter for the government to decide and we await the outcome of the review.”
Hutton continued it was essential for all affected pension schemes to be wound up as quickly as possible.
He added: “Should the review identify an alternative way of using scheme assets, we will ensure that no scheme members lose out because their pension scheme has completed the wind up process.”
He reminded pension scheme managers to apply to the FAS on behalf of members: “Failure to do so will mean that people who could be receiving payments will lose out on the substantial help that is now available.”
The minister invited suggestions and contributions to the review. It will be advised by the Government Actuary Department and will report at the end of the year.
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