View more on these topics

Pensions minister launches consultation into funding changes

Pensions minister Rosie Winterton has opened a consultation into pension funding changes for defined benefit schemes.

Speaking at the Confederation of British Industry this morning, Winterton said she would launch an informal consultation into section 75 of the pensions act.

CBI deputy director general John Cridland, says: “These proposals are very welcome, and would remove funding rules that currently do not improve pension security for employees, but add massive costs to companies looking to restructure.

“During these difficult economic times, barriers to corporate activity must be minimised if firms are to adapt and survive.

“Pension schemes are best protected by keeping the sponsoring employer committed and solvent, which means ensuring pension costs are fair and affordable.”

Section 75 is where a debt is triggered where companies with final salary schemes undertake a corporate restructure. Essentially it is around the question of companies with DB schemes that restructure their organisations.

Recommended

Fund jobs at risk in market downturn

Fund management groups look set to cut jobs as the effect of the credit crisis takes its toll.Threadneedle has confirmed it is reducing its cost base across the business due to the current market environment, with 75 to 85 jobs set to be lost.Schroders, which employs around 1,250 staff in London, says it has reviewed […]

Inheritance tax and estate planning – exemptions and reliefs

By Kim Jarvis, technical manager with Canada Life’s ican Technical Services Team In this article we look at the main exemptions and reliefs that are available on death. Within the article, spouse also means civil partner.   Nil-rate band Under current rules, any part of the estate that falls within the available nil-rate band (NRB), […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment