In recent years, few topics seem to have risen so regularly to the top of the pensions “hot topics” pile as that of the employer covenant. And rightly so, you might reasonably think. But despite Regulatory guidance, do pension scheme trustees and employers actually feel confident that they know just how often their covenant should be reviewed, by whom or to what level of detail? I’m not sure. (more…)
Archive for July, 2010
The Pensions Regulator and the need for employer covenant reviews
Friday, 23 July 2010The Pensions Regulator issues its first contribution notice
Monday, 5 July 2010The referee cracks down on obvious fouls
Over five years after the introduction of its so-called moral hazard powers, the Pensions Regulator has issued its first contribution notice. Michel Van De Wiele N.V. – the Belgian parent company of insolvent UK subsidiary Bonas UK Limited – has been ordered to pay £5.089 million into the Bonas Group Pension Scheme. This amount would take the scheme to a position of solvency on the PPF funding basis, so avoiding a call on the PPF. This tour de force by the Regulator may suggest a change of tack and new willingness to embrace its powers. To my mind, however, this shows that whilst the Regulator may prefer intervening behind the scenes to exercising its powers, it is not afraid to blow the whistle where there is an obvious foul. (more…)
