Pensions laws to be reviewed
12 November 2008
Laws to do with pension schemes offered by companies are to be reviewed and possibly changed, it has been reported.
According to the BBC, Pensions Minister Rosie Winterton will announce a review soon, with the government assuring savers that any changes would not reduce the amount of pension protection offered to them.
Current legislation means that when a company is taken over and there is a deficit in pensions, the new owners are legally obliged to make it up, a law which was introduced in 2004 when thousands of people lost money after a firm went under.
The economic conditions in the UK mean more and more businesses are crumbling, which sees an increase in the number of companies being taken over or restructured.
Businesses have complained to the government over the existing pension laws, pointing out that troubled firms often have large deficits and saying current legislation makes taking over a business more expensive.
In related news, the Financial Times has suggested that the best way for people to ensure a decent-sized pension is to work for the public sector as workers here still have defined benefit pensions schemes.
