BusinessCompany NewsCompanies under threat from new pension fund

Companies under threat from new pension fund

KPMG study warns of huge bills for small businesses

Struggling companies, especially smaller ones, could find themselves in
danger of going under due to huge bills they will be forced to pay into the new
Pensions Protection Fund, KPMG has warned.

Companies have until 31 March to gather together information about their
final salary pension schemes and submit it to the Pensions Regulater to
determine how much they must pay into the fund. 

The PPF has been set up by the government to help employees whose company
pension schemes collapse.

Business consultants Dun & Bradstreet will fix the credit ratings of
companies by the end of the month, and these will be used to determine the
amount each company will have to pay to the protection fund with invoices do to
be issued during the summer.

Big companies are likely to get a lower risk rating as they are considered a
safer long-term bet. But smaller and medium-sized firms are likely to get hit
harder since they are more vulnerable.

A KPMG spokesman said: ‘There is no doubt this could tip some companies over
the edge or put them in serious trouble.”

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