22nd June 2018 Jane Kola comments in Pensions Expert on SNP Bill seeking PPF support for orphan liabilities
A private members’ Bill submitted by Scottish National Party MP Alan Brown last week could see the Pension Protection Fund taking on so-called orphan liabilities from multi-employer pension schemes.
The Bill looks to change the basis by which the exit fee of an employer leaving a multi-employer scheme is calculated, in the event that their scheme is underfunded, from the section 75 basis to the typically lower technical provisions basis.
Jane Kola described the Bill as a “real watering-down of the current legislation”.
“If it had been looked at 10-15 years ago then it might have been seen as a middle ground from what we had before and the minimum funding requirements that we ended up with,” she said. “This feels like we are really going backwards rather than forwards. It’s probably 10 years too late,” she added.
Read Jane’s comments in Pensions Expert
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