Government announces details of pensions funding review
The government has released the details of a funding review that aims to investigate the best means of assisting Britons adversely affected when their company pension scheme wound up under-funded.
While the recent budget outlined an extension to the Financial Assistance Scheme facilitating top ups to 80 per cent of core pension expectations, the review will look to methods of non-public funding to make up the shortfall.
James Purnell, minister for pensions reform, commented that the review will investigate the potential use of assets in winding up schemes and other sources of funding not from the public purse.
"The team undertaking the assets review has been asked to establish whether there are schemes with a solvent employer in different circumstances that should be considered for eligibility," he said
He added that the review team, led by directing actuary of the government Actuary's Department Andrew Young, had already begun its meetings and would soon arrange to contact other relevant parties.
The Financial Assistance Scheme was set up in September 2005, following the Pensions Act a year earlier.
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