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date: 15 April 2008

embargo: Immediate release

TUC response to DWP proposals for protecting pension funds

Responding in full to the proposals announced yesterday (Tuesday) by the DWP to protect pension funds that are involved in buyouts, Midlands TUC Regional Secretary Roger McKenzie said:

'These measures will help protect pension schemes against smash and grab raids by unscrupulous investors. Requiring companies to contribute to pensions funds will improve the financial security of schemes. Giving the Pensions Regulator the power to bolster scheme trustees will also protect the governance of schemes in members' interests.

'Pensions should be backed either by a sponsoring employer or a regulated insurance company. The Government is right to target business models that rely on operating in the occupational pensions realm instead of the insurance sector, where they would be required to hold more capital against their liabilities. These models should have no place in the pensions industry.

'Unions will work closely with Government and the Pensions Regulator to ensure that this new regulatory framework is strong enough to cope with any new business models emerging from the pensions industry. We will also continue to champion the role of trustees in ensuring the good governance of schemes and the protection of members interests.'

NOTES TO EDITORS:

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Contacts:

Media enquiries: Roger McKenzie, T: 0121 262 6383; M: 07879 497 291;

E: rmckenzie@tuc.org.uk; Alan Weaver, T: 0121 262 6383; M: 07771 778 694;

E: aweaver@tuc.org.uk

Press release (400 words) issued 15 Apr 2008