Pensions

House of Lords written question – answered at on 8 November 2010.

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Photo of Lord Laird Lord Laird UUP

To ask Her Majesty's Government what measures are in place to safeguard the pensions of former employees of financial institutions if the institution is sold to a body based outside the United Kingdom.

Photo of Lord Freud Lord Freud The Parliamentary Under-Secretary of State for Work and Pensions

The Pensions Regulator, set up under the Pensions Act 2004, is the body responsible for the regulation of work-based pension schemes in the UK. The regulator's main statutory objectives include the protection of the benefits of members of work-based pension schemes administered in the UK and it has a number of powers to meet this objective.

As I said in my reply of 27 September 2010 (col. WA399), where, as a result of the state of the employer, the pension scheme becomes based outside the UK, a number of regulatory provisions could apply. For example, the Pensions Regulator has certain powers to take action where such a move causes material detriment to the likelihood of members of a defined benefit scheme receiving their benefits. Pension schemes based in a country outside the UK will be subject to the legislation and regulatory arrangements in that country.

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