UK - The Conservatives are urging the government to change the rules for pension schemes that wind up.
Tory work and pensions spokesman Oliver Heald proposed an emergency change in existing rules on wind up in a bid to ring fence pension funds and guarantee pension payouts.
He suggests that priority is given to pensioners and employees who are within 10 years of retirement – a change that could be introduced without primary legislation.
His early day motion – backing the proposals in the NAPF’s document Pensions: Plain and Simple on a possible new schedule of priorities on winding up a final salary scheme with an insolvent employer – has gained 37 signatures.
Heald said: “We need urgent action to protect the pensions of long-serving workers when their employer goes bust.
“The present protection is insufficient and has actually resulted in more and more people facing large cuts in their retirement incomes.”
Partner Insight: Members' evolving needs and expectations are driving changes in scheme administration. As the pensions landscape inevitably continues to change, how will your scheme's approach need to develop to keep pace?
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