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16-Apr-08 11:15 [Pensions]
Government announces new protection for pension schemes The government is to introduce new measures to protect people who have a company pensions scheme and it becomes involved in a buyout.
Although the vast majority of pension schemes would not be affected, minister for pensions Mike O'Brien has said that the Pensions Regulator will get new powers to force companies which buy firms and their pension schemes to put enough money in to protect its members.
Mr O'Brien said: "I want to guard against pension schemes simply being treated as a commodity to be bought or sold. The most effective way to tackle this problem is to give the regulator the power to require contributions to pension schemes when an employer's actions reduce the security of members' benefits."
He added that he wants to see "pensions secure and promises kept" so members can "look forward to a happy retirement.
According to Mr O'Brien, the powers will only be used in risky situations to avoid putting large burdens on employers.
The Pensions Regulator was set up to protect the benefits of member of work-based pension schemes.
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