Posts Tagged ‘Multi Employer’
Multi employer pension schemes – no storm in a tea cup!
In all of the latest gender related nonsense from Europe you’d have been forgiven for missing the latest tale of woe from the world of multi-employer pension schemes.
We’re grateful to Jennie Kreser of Silverman Sherliker for publishing an excellent article on the fate that has befallen the Wedgwood Museum – home of all that is great and good in the world of the eponymous pottery. Have a read of the article here – it’s well worth looking at. Jennie has a great style and brings complex issues to life in a clear and understandable way. You can subscribe to Jennie’s blog here.
We work with a number of employers in the Third Sector who are members of multi-employer pension schemes. Many of them will recognise this tale of woe. It is one that has befallen some charities who have found themselves having to close due to the imposition of huge (relative to their reserves) pension debts.
The Section 75 Debt regulations were primarily designed to avoid employers dumping pension liabilities by restructuring the business or group. The Law of Unintended Consequences means that not only are we seeing perfectly viable charitable organisations in danger of closing but also the possible loss of part of our national heritage.
The government are currently consulting on a change to these regulations but as far as we are aware no mention has been made of relaxing the regulations in situations like this. Clearly, something needs to be done.
Meanwhile, if you are in Staffordshire you may want to pop along to the museum before the shelves are bare!