Pensions - Articles - Government & industry must avoid knee jerk reactions on BHS


PTL, a leading independent trustee and governance services provider, says that while the situation with BHS has been a concerning event on many levels, it is vital that neither the government nor the industry succumb to ill-conceived, knee-jerk reactions.

 Richard Butcher, MD at PTL, commented: “We are only a couple of weeks into the BHS saga, but already the story is starting to sound like the script of a pension disaster movie. If it wasn’t for the loss of pension rights for the innocent members, a disinterested party might find it entertaining to watch.

 “Back in the early 2000s there were a couple of very high profile business collapses, with the consequence that workers lost accrued pension rights and the Pension Protection Fund (PPF) and its time-limited predecessor, the Financial Assistance Scheme were created. The PPF is, of course, today an established component of the pension world (although now perhaps at risk because of the size of the BHS problem) but we really need to avoid other, ‘knee jerk’, legislations designed hastily off the back of each event.”

 Butcher continued: “What is clear from the aftermath of all this and in the intensity of the scrutiny, is that every party in any DB funding process: trustees, employers and the regulator, will be tempted to become more conservative, more hard line, and their actions more aggressive . We are all in for a far tougher, far rougher round of funding negotiations over the next cycle.”
  

Back to Index


Similar News to this Story

Launch of the new Pensions Commission
Standard Life, Aegon, Aviva, Legal and General and PMI comment on the launch of the new Pensions Commission
Retirement confidence dips for 50 somethings
New research from Aegon reveals that only 33% of Britons aged 50–59 feel confident about retiring comfortably, the lowest of any age group. This midli
Pension Commission must deliver bold reforms
Comments from Kirsty Anderson, retirement specialist at Quilter on the DWP’s plan to revive the Pension Commission, including auto-enrolment reform an

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.