NEWS   |    December 5, 2019

Partner Rosalind Connor comments in The Times on the complications that can arise when insurance companies buy out businesses’ pension schemes

Last night Channel 5 shone a spotlight on Britain’s “savings time bomb” in a documentary that was enough to give anyone nightmares.

Many of the Britons interviewed on Britain’s Great Pension Crisis had chilling tales. Can it really be this bad?

The Waspi (women against state pension inequality) campaign, which was launched in 2015 in protest at an increase in the women’s pension age from 60 to 66, is one example of how older people feel let down by the system. But there are plenty of other concerns, as raised in the Times article.

One of these relates to a fundamental restructuring taking place as insurance companies relieve businesses of their pension burdens by buying out the schemes.

Partner Rosalind Connor commented these are complicated undertakings that often expose many underlying problems.

“Frequently, administrative or data errors have crept in which result in some pensions being overpaid and some underpaid,” Connor explains. “And this might have been going on for years.”

Remedying and correcting all this is not easy. “Adjusting payments down is much harder than adjusting up,” she says. “But trust law is about following the rules of the scheme and it is better done now than, say, in ten years’ time.”

Read Rosalind‘s comments in The Times.

The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. Arc Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.

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