Rogue bosses who try to line their own pockets at the expense of company pension schemes face jail in a new government crackdown. They would be liable to up to two years in prison for risking the pension savings of their employees. In the wake of a series of scandals over mismanagement of final-salary pension schemes, Theresa May unveiled plans for a new criminal offence, saying she was determined to give the Pensions Regulator ‘the powers it needs to crack down on the minority of businesses who shirk their responsibilities’.
She said the ‘responsible majority will no longer have to bail out the irresponsible few’. Plans for a new criminal offence mean bosses would be liable to up to two years in prison for risking the pension savings of their employees. Work and Pensions Secretary Esther McVey (pictured) said: ¿We will clamp down on and, where appropriate, punish directors who wilfully or recklessly put pension schemes at risk¿
Plans for a new criminal offence mean bosses would be liable to up to two years in prison for risking the pension savings of their employees. Work and Pensions Secretary Esther McVey (pictured) said: ‘We will clamp down on and, where appropriate, punish directors who wilfully or recklessly put pension schemes at risk’
Work and Pensions Secretary Esther McVey added: ‘We will clamp down on and, where appropriate, punish directors who wilfully or recklessly put pension schemes at risk.’The promise of action comes with thousands of Carillion workers reportedly facing cuts to their retirement benefits following the firm’s collapse. Carillion has been fiercely criticised for rewarding shareholders with dividend increases as its pension deficit soared last year. The Government’s move also follows calls for the Pensions Regulator’s powers to be strengthened after the collapse of retailer BHS in 2016 with a huge hole in its pension fund. (Daily Mail)
