Commenting on the latest re-announcement by the government of plans for a new criminal offence of ‘recklessly or wilfully’ under-funding a workplace pension scheme, Steve Webb, Director of Policy at Royal London said:
“We first heard of these plans back in 2017 and we are still years away from seeing them put into effect. It will be very hard to prove that someone ‘recklessly’ under-funded their pension scheme, especially with the high level of proof needed to jail someone for up to seven years. There is a risk that those who failed to do all they could will get away scot free. The issue with BHS was that the problems were not picked up and addressed much earlier in the process, rather than the lack of a strong penalty after the event. These new laws are more likely to generate headlines than to protect workers’ pensions”.
About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.