Insurance Group Prudential said almost half (42%) had reservations about the Pension Protection Fund, which would see firms levied to create a ‘lifeboat’ kitty for workers whose own schemes sink when their companies go bust.
Many FDs said they feared that efficiently run pension schemes would have to bail out inefficient ones. A third also voiced concern over proposals to make solvent companies buy out members’ benefits in full when winding up final salary pension schemes. It was feared the cost could push borderline cases into insolvency.
Ted Clack, director of risk management for pension schemes at Prudential said: ‘Offering Defined Benefit pension scheme members a lifeboat following wind-up is a move in the right direction. But there are key concerns within business about how the proposals will work in practice.’
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements
Charles Tilley's departure from CIMA leaves the accounting world quieter, but his institute with an exciting foundation