The cost to employers has so far been the main caveate applied to views on the Pensions Protection Fund, but a closer inspection of the powers of the new pensions regulator, taking over after OPRA, reveals there may be other issues to consider.
One lies in an apparent contradiction between the objective of the PPF - to ensure members not yet retired are not left high and dry when schemes are wound up because of, e.g., insolvency - and one of the main stated powers of the new regulator. The Pensions Bill says in the section on the new regulator that it has the power to wind up schemes. “The authority may, during an assessment period…in relation to an occupational scheme by order direct the scheme to be wound up if they are satisfied that it is necessary to do son in order (a) to ensure the scheme’s protected liabilities do n...
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