UK - The Pensions Regulator's (TPR) action to impose the first Financial Support Direction (FSD) has been welcomed, although cautiously in some quarters.
Richard Jones, principal, Punter Southall, said it showed TPR was not toothless, but the major issue was the impact the FSD would have to members' benefits given the company was going through Chapter 11 bankruptcy in the US.
Jones commented: "It is also somewhat disappointing that the FSD was imposed by default rather than through a process of challenge, as Sea Containers has withdrawn its appeal rather than the Pensions Regulator winning the arguments of the case.
"An open argument would have given trustees and employers useful information on the factors that will be taken into account in an appeal and the way the appeals process itself will work."
Nick Couldrey, partner, Sackers and Partners, which advised trustees on the case, said it was excellent news for scheme members.
Couldrey commented: "We expect a substantial contribution to the deficiency in the schemes which means better benefits for members. It also means that the likelihood of needing to make a call on the Pension Protection Fund will be reduced."
In the first ever use of its full powers, TPR issued the FSD against SCL after ruling it should provide financial support to its London-based subsidiary firm's two pension schemes, Sea Containers 1983 Pension Scheme and Sea Containers 1990 Pension Scheme.
SCL will be compelled to provide a form of financial support to the two schemes within 30 days of the FSD being issued.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.