Warning To Company Pension Managers

The Pension Regulator has warned that if trustees and sponsoring employers cannot agree funding plans to make up any pension liability shortfalls, it will intervene and use its powers to resolve the matter.  

The Pension Regulator has warned that it is seeing an increasing number of people failing to agree payment rates.  This is a matter that The Pension Regulator takes seriously and would take any steps necessary to resolve any issues.  

Our view

It is unfortunate that many employers are left with huge liabilities for pension funds that employees do not pay into themselves and do not value the benefit highly enough anyway.  

If, as an employer, you wish to continue to offer a pension ‘carrot’ to staff, you have to agree funding within the law to ensure that the scheme remains solvent.  If you cannot afford this, we suggest you ‘wind up’ the pension scheme or scale it down and offer a less expensive scheme.

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