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Fair funding for crashed pensions

It doesn&#39t matter what sort of Cabinet infighting led the Government to decide to help fund the pensions of those facing poverty because of scheme wind-ups. Those affected are now being looked after to some degree although £400m is not a lot of money and the Government is looking to companies and providers to cough up more. But with what justification?

It is asking a disparate group of people, say, shareholders in Marks & Spencer and the policyholders of Norwich Union, to provide cash. But why not an Amsterdam Asian equity specialist, a Boston custodian bank or a global benefits consultancy?All are arguably part of the UK pension industry.

This is a problem caused by Government regulatory failure and flawed Government advice on occupational schemes. So it is taxpayers who should pay up – spreading the burden at least as fairly as the UK&#39s tax system. Yet we fear that calls for other funding from supposedly involved parties may end up as an excuse for underfunding.

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