NEWS   |    May 14, 2020

Partner Vikki Massarano comments in the Legal Diarist on TPR’s call on trustees to stay vigilant for companies paying out dividends and “excessive” bonuses

The pressures and dilemmas created by the C-virus are so widespread that it’s hard to keep track of them all. Vikki Massarano, a partner at specialist pensions law firm Arc Pensions Law, has drawn attention to what is happening in the pensions field where The Pensions Regulator has called on retirement fund trustees to stay vigilant for companies paying out dividends and “excessive” bonuses if this weakens financial support for company pension schemes.

Vikki commented that trustees and employers should remember that recent relaxations about payment of deficit contributions and TPR’s enforcement activities are ‘only temporary’.

“While it is acceptable to take unprecedented steps to deal with this unprecedented crisis, employers should not expect those to continue unchecked and trustees will need, as ever, to make sure they are being treated equitably and that members are not losing out to shareholders or other creditors,” she warns.

Read Vikki’s comments in the Legal Diarist.

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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