Ian Pittaway challenges results of DB scheme study by Warwick Business School in Professional Pensions
Senior partner, Ian Pittaway, suggests the findings of study by Warwick Business School, which conclude that forcing CEOs to join the company DB scheme would protect pensions, are “totally impractical”.
Explaining that DB scheme closures and annual allowance limits mean it would simply not be workable, Pittaway instead suggests:
“A simple improvement would be to have a maximum recovery plan period for all schemes, but with a facility for employers to apply to TPR for an extension if they had the grounds to do so. That would simplify complex and long-running negotiations at a stroke.”
The research comes after the DWP consultation on strengthening TPR’s powers suggested introducing prison sentences of up to seven years for company bosses who behave ‘wilfully’ or ‘recklessly’ in relation to the company pension scheme. Many in the industry question the enforceability, including Pittaway, who considers it “may only be viable in extreme cases to deter or punish”.
Read the full comments in the article on page 10 of the 21 February edition of Professional Pensions digital edition here
Read our Alert on the Government response to TPR’s consultation.