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ARTICLE · 16 MAY 2019

Protecting Defined Benefit Pension Schemes – New Pensions Regulator Powers Confirmed

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You may have seen recent – sensationalist – media headlines like:

United KingdomEmployment and HR

You may have seen recent – sensationalist – media headlines like:

"'We're coming for you' – Amber Rudd's warning for bosses reckless with employee pensions" (ITV News)
"Reckless bosses who put workers' pensions in danger could be jailed for seven years" (The Mirror)
"Seven-year jail terms unveiled for pension fund mismanagement" (The Guardian)

The truth behind these headlines is that the government is starting to deliver on proposals made last year to strengthen the defined benefit (DB) pensions system in the UK.

In particular, the government has confirmed that:

  • The Pensions Regulator will be given new powers to better protect members of DB pension schemes.
  • Changes will also be made to the existing anti-avoidance, notifiable events, and voluntary clearance regimes, to further strengthen the DB regulatory framework.

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