Pensions: Tougher jail terms for mismanaging funds

Cornelia Mascio
Febbraio 12, 2019

Bosses who recklessly mismanage pension funds face seven years in jail under a clampdown due to be unveiled by Amber Rudd this week.

The pensions secretary said "wilful or reckless behaviour" relating to a pension scheme will become a criminal offence and could lead to an unlimited fine.

Ministers have previously suggested a maximum term of two years in jail, but Rudd used a newspaper article to announce tougher sentences.

"For too long, the reckless few playing fast and loose with people's futures have got away scot-free, Rudd wrote in the Sunday Telegraph newspaper".

"If you run your company pension into the ground, saddling it with massive, unsustainable debts, we're coming for you", she said.

The Topshop tycoon agreed to hand over £363 million in cash to save the BHS pension scheme following the chain's collapse past year that left a £571 million deficit.

Under the new law, courts would also be given the power to levy unlimited fines for mismanagement of pensions.

That meant the loss of 11,000 jobs and put the pensions of 19,000 current and past employees under threat.

A year after it was sold by Sir Philip Green for £1 in 2015, the retailer collapsed into administration, leaving a £571 million pension deficit.

MPs called for Sir Philip to be stripped of his knighthood and a Parliamentary report called him the unacceptable face of British capitalism.

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