Thursday , August 5 2021

Pension crisis: up to seven years in prison for the hardened bosses News Politics

Bosses face a prison sentence of up to seven years if they are reckless and play "quickly and freely" with their worker's pensions.

Cabinet Minister Amber Rudd warned the managers that they are guiding schemes "into the ground" and "leaning" with "massive, unsustainable debts," and then "we are coming for you".

The pension secretary insisted that such "deliberate or reckless behavior" would be committed as a criminal offense, as would those who are found guilty of being guilty of unlimited fines.

Philip Green
A year after Sir Philip Green sold BHS for £ 1, he went to the administration

Mrs Rudd's commitment follows the BHS pension scandal, which saw the seller go into administration just one year after Sir Philip Green sold it for £ 1 in 2015.

The fall caused a pension deficit of £ 571 million.

Sir Philip later agreed to pay £ 363 million to end the action against him by The Pensions Regulator (TPR).

Last summer, the government launched a consultation as part of efforts to strengthen TPR's powers.

Amber Rudd
"We are coming for you," said the late secretary

The regulator can go faster and more often when businesses change changes that could harm the pension system.

Writing in Sunday Telegraph, Mrs Rudd said: "To limit these freelance playings quickly and freely with my money, I will do" deliberate or reckless behavior "in connection with the pension system criminal offense, with a prison sentence of up to seven for the worst offenders.

"We will also give the courts the power to charge unlimited – to unlimited – fines.

"So if you manage your company's pension into the land, you inherit it with huge, unsustainable debts, we come after you.

"If you risk the future of your employees on risky investments that endanger the pension scheme, we are coming for you.

"And if you chronically manage the pension scheme badly and go under it, we are coming after you."

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