Government plans to boost pension scheme protection

News Article - 23 April 2008
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The government has unveiled new plans to boost protection for pension scheme members in Britain.

Under the new changes to the Pensions Regulator from the Department for Work and Pensions, powers requiring employers to provide contributions to a pension scheme if their actions could threaten the security of members' pensions will be strengthened.

The Pensions Regulator will be able to use the stronger powers to reduce the risk to members' interests by changes to schemes or corporate transactions.

Mike O'Brien, minister for pensions reform, stated: "We need to ensure members' interests are protected. I want to guard against pension schemes simply being treated as a commodity to be bought or sold."

The minister added that it was important for the powers of the Pensions Regulator to "keep pace with developments in the pensions market", with the planned changes aimed primarily at risky situations in a bid to avoid new costs being placed on the Pension Protection Fund.

Most pension schemes will not be affected by the changes, but businesses are advised that payroll and accounting software can help them to keep track of their pension contributions and responsibilities more effectively.

The pension system reforms will apply to all employers and their associates, including any investors in the employer who might seek to profit from the scheme. An eight week consultation will be held on the proposed changes before they are instituted.

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