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04-Mar-08 11:10 [Pensions]
New approach to winding up pension schemes unveiled The Pensions Regulator, Pensions Protection Fund and the Department for Work and Pensions have issued a joint consultation paper aimed at speeding up the winding up process for pensions schemes.
It is hoped that such steps will ensure that scheme members will know sooner about the benefits they will be entitled to, while also ensuring that assets from a scheme are "maximised".
Minister for pensions reform Mike O'Brien said that when an occupational scheme closes, it is "deeply worrying" for its members.
"What they need in such circumstances is certainty rather than the anxiety of undue delays," he stated.
According to the minister, it is "reasonable" to expect a pension scheme to complete a the "key activities" of a wind-up in under two years, with the regulator able to intervene if this process "drags on".
Tony Hobman, Pensions Regulator chief executive, said that the organisations recognised that trustees will require support and so draft guidance has been published to provide assistance.
Commenting on workplace pensions earlier this week, Joanne Segars, chief executive of the National Association of Pension Funds, said that workers continue to "value" such provision.
A plan by the government to increase the number of workers in occupational pension schemes could result in existing retirement provision facing cuts, it has emerged.
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Telecommunications company Cable & Wireless (C&W) has signed a deal with Prudential to safeguard and guarantee 5,000 pension payments belonging to employees.
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The Pension Protection Fund (PPF) has announced that it has taken over a further 15 insolvent pension funds in the month of August, it has emerged.
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