Work and Pensions Secretary agrees with Lib Dem pension proposal

This week, the government agreed to bring forward plans to review the current rules concerning the priority of pensioners when a company fails following pressure from the Liberal Democrats.

Responding to calls from Stephen Lloyd, our Spokesperson for the Department for Work & Pensions,  new DWP Secretary of State Esther McVey agreed that a review into the current rules – past and current – after companies go bust is “something that needs to be brought forward”.

Stephen said:

Under current rules, pension obligations are unsecured – meaning that insolvent companies only fund their pension schemes once they have compensated their other supposedly more ‘important’ secured creditors.

Today I urged the new Secretary of State to review the rules and provide further protection for employees with private pensions by giving them greater priority when companies fail. I was delighted to hear the Minister agree that this is something ‘which needs to be brought forward’.

Then and only then will employees with private pensions be wholly protected when large companies collapse. I will be making sure that the Minister sticks to her word on this.

You can watch Stephen’s question here.

Now, warm words in the Commons Chamber doesn’t necessarily translate into action from the Government, but you can bet your life that Stephen will be pursuing this. 

We probably all know somebody whose pension has been affected when a company fails. When people have been paying into a scheme for their working lives, they deserve to see the fruits of that investment.

Read more by or more about or .
This entry was posted in News.
Advert

4 Comments

  • Agreeing ‘to review’ is not agreeing’ to take action’.

  • Jonathan Hunt 23rd Jan '18 - 11:38pm

    Pensions are just wages deferred. They belong to workers, not bosses. Those who take them, use them for other purposes or fail to fully fund them are guilty of theft.

    Responsibility for ensuring company schemes have enough money in them should lie with all company directors, who in some recent cases are little more than common criminals.

    The thought of swapping their Savile Row suits for prison garb would make non-executive directors actually do their jobs. Big fines they would recover from the firms are no deterrent.

    If a pension fund falls below, say,10 per cent of the minimum assessment required by qualified professionals, its directors or trustees should face the threat be sent straight to jail, and not pass Go to collect huge redundo payments.

    The sight of a few top City stars in clink would help ensure pension funds are kept funded.

    Let

  • Nonconformistradical 24th Jan '18 - 7:23am

    ¨The sight of a few top City stars in clink would help ensure pension funds are kept funded.¨

    Or perhaps the sight of a few of them, having been stripped of all their assets, spending the rest of their working lives on the minimum wage cleaning fatbergs out of sewers… sewer rat seems an appropriate description for these people…

Post a Comment

Lib Dem Voice welcomes comments from everyone but we ask you to be polite, to be on topic and to be who you say you are. You can read our comments policy in full here. Please respect it and all readers of the site.

If you are a member of the party, you can have the Lib Dem Logo appear next to your comments to show this. You must be registered for our forum and can then login on this public site with the same username and password.

To have your photo next to your comment please signup your email address with Gravatar.

Your email is never published. Required fields are marked *

*
*
Please complete the name of this site, Liberal Democrat ...?

Advert



Recent Comments

  • User AvatarVenetia Caine 21st Oct - 4:56am
    Three of us from Somerset, LibDems all, travelled independently, and I know there were more with other groups. So many there, we couldn't get nearer...
  • User AvatarCaron Lindsay 21st Oct - 12:03am
    @Rhiannon - it was clear that you were born to lead chants, as well as organise Exit from Brexit campaigns:-).
  • User AvatarJames Marrs 20th Oct - 11:36pm
    Well im all for a peoples vote yet please dont forget the most effected like myself living in the EU many were DENIED a vote...
  • User AvatarJill Caudle 20th Oct - 11:31pm
    There were lots of Lib Dems elsewhere in the march too e.g. at least three members in our group from Salisbury for Europe (which covered...
  • User AvatarLiberal Neil 20th Oct - 11:21pm
    It was a great day and, as you say, lovely to keep bumping into Lib Dems from all across the country. Whether we win or...
  • User AvatarGlenn 20th Oct - 10:50pm
    Alex There is nothing technical about it. Whether or not other leaders would have done the same doesn't alter the reality that Mr Clegg was...