| Industry News |
|
| News » Insolvency Law » Regulator warns 'pensions come before dividends' |
|
18/02/2009
Regulator warns 'pensions come before dividends' |
|
Businesses will not be allowed to cut contributions to underfunded pensions if they are still paying shareholder dividends, the UK Pensions Regulator will reportedly announce today.
The Financial Times claims that the watchdog will inform organisations that it will support beleaguered businesses that are close to insolvency due to such a financial burden by lengthening payment periods to restore pension schemes.
"There is no reason why a pension scheme deficit should push an otherwise viable employer into insolvency," the newspaper cites the regulator as saying.
However, the regulator will say that the pension recovery plan "should not suffer" just so that companies can continue paying shareholder dividends.
David Norgrove, the organisation's chairman, also told the newspaper that the legal position of pension schemes has changed since the last recession and they now have the same status as unsecured creditors, ranking above shareholders.
Meanwhile, Age Concern has claimed that the government's position on compulsory retirement age is "completely contradictory". |
| |
| Related Articles |
11/01/2010
Retailers 'face tough 2010'
This year will be a very difficult one for retailers, the British Retail Consortium (BRC) has predicted.
|
23/12/2009
Economy 'to remain sluggish'
The UK economy will continue to be weak as a number of factors collude to prevent it growing with much speed, an expert has predicted.
|
17/12/2009
New Year insolvency warning
Insolvency lawyers could be very busy in the new year as the retail sector faces a large number of struggling traders going to the wall, it has been predicted.
|
02/12/2009
Warning for businesses may raise insolvency issues
Banks are still substantially disconnected from businesses despite the efforts of the government, it has been claimed.
|
25/11/2009
Insolvencies 'accounting for a third of job losses'
Nearly a third of the jobs lost in England and Wales in the past year were caused by company insolvency, it has been revealed.
|
News Archive