Nov 14 2008
The government has revealed it is to review the safeguards which prevent employers form abandoning their pension schemes.
According to pensions minister Rosie Winterton, the Labour administration has begun a four-week consultation on Section 75 of the Pensions Act to help ease the cost of company pensions.
The move follows complaints that current rules hinder legitimate corporate reorganisations.
Ms Winterton said: "Where [the] government can help ease the burden on employers who run pension schemes at this time we should, but not at the expense of protecting people's pensions."
The announcement was not welcomed by the Trades Union Congress, with its general secretary Brendan Barber stating his concern that pension protections would be weakened.
In other pensions news, the Pension Protection Fund recently revealed that it now covers 66 schemes following the addition of four new ones last month, including the Radix Employees Defined Contribution Plan and Tomkinsons Carpets Pension Scheme.
