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More pension funds raids expected

Lawyers are expecting more raids on pension scheme surpluses by employers as more common law courts support company&#39s claims.


The forecast follows strike threats by Ford workers after a proposed merger of two company pension schemes lead to claims the company would then raid the £507m surplus to plug a separate deficit.


The Ford example precedes a similar UK case involving a surplus in the National Grid pension scheme, which is set to go before the Lords next year.


Law firm Eversheds partner Robin Ellison says: “There have been recent court cases in the US, New Zealand and South Africa about surpluses and who owns them and in almost all the cases they have said the surplus belongs to the employer.”

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