Fears over power of Pensions Regulator
Chairman of pensions watchdog in spotlight over lack of powers to ensure company compliance
David Norgrove, chairman of the
Pensions
Regulator , is to address concerns that he lacks the powers to
force heavily indebted companies to shore up their pension schemes.
Norgrove is to appear before a parliamentary sub-committee where he will
answer questions on this issue,
the FT
reports.
The hearing follows private equity bids for
Sainsburys and
Alliance Boots, where pension concerns have been raised by employees about the
future of their retirement benefits.
Although the regualtor is influential, it has no formal powers that oblige
buyers of businesses to seek clearance for the structure of their transactions.
Experts have said that the regulator should have the power to demand up front
payments into pension schemes where there is a deficit.
Further reading:
Pensions deficit: tip of the iceberg
FTSE 100 pension deficits wiped out
ASB vote will cause shake-up for pensions