The Pension Compensation Board is to pay out over £2.5 million in its largest ever settlement, after money was taken from a pension scheme.
Trustees of CW Cheney & Sons were first investigated by the Occupational Pensions Regulatory Authority in 2000 over concerns that they had misappropriated £2.9 million of their £3.1 million of the schemes assets. Only £1.3 million has ever been recovered.
This settlement will greatly improve the position of scheme members, although it was already severely under funded when the company started to go into liquidation in May 2001. This shortfall will not be compensated, only the money that was stolen.
Our view
Protection at last for pensioners.