Company bosses who neglect pension funds ‘to face prosecution’
Company bosses who fail to protect the pension funds of ailing firms will face tough new criminal sanctions under government plans set to be announced this week.
Ministers plan to hand new powers to the pensions regulator to fine or prosecute business chiefs that neglect staff pension pots.
Speaking yesterday, Theresa May said it was “absolutely vital that people who work hard and contribute to society throughout their career can have the confidence that their pension will pay out in retirement”.
The Prime Minister added: “I am committed to making sure our economy works for everyone – backing businesses to create good jobs but stepping in to make sure they play by the rules.
“That’s why my government is making sure the Pensions Regulator has the powers it needs to crack down on the minority of businesses who shirk their responsibilities.
“The action we are taking will ensure that the majority of responsible employees, employers and pension schemes will no longer have to bail out the irresponsible few.”
The measures come after Construction giant Carillion collapsed last year, leaving a £1bn hole in its pension fund and its 28,000 members facing a cut to their retirement incomes.
It later emerged that the firm’s board dismissed a proposal that could have injected £218m into its pension scheme when it was experiencing financial difficulties as they believed it would recover.
Mrs May previously told the Observer she was committed to tackling bosses who “line their own pockets” while failing to protect workers’ pension pots.