Unretired pension scheme members will soon benefit from additional protection against future scheme wind-ups when new governnment regulations come into effect in three weeks time, the DWP says.
Amendments to the Priority Order, to be implemented from 10 May, have been made to create a fairer 'deal' for working pension scheme members who face a possible wind-up, according to the Department for Work and Pensions.
Pensions minister Malcolm Wicks says: "We have taken action to ensure that when a scheme is wound up, the assets are shared as fairly as possible between pensioner and non-pensioner scheme members.
"Many scheme members stand to gain up to 20 per cent of their pension, so this is an extremely worthwhile interim change before the Pension Protection Fund, which will offer more comprehensive protection, comes into effect.
By amending the Priority Order, the Government is taking another important step to further safeguard the rights of company scheme members," he says.
While those already in retirement remain top priority if a scheme faces dificulties, the proposed changes will ensure the rights of unretired scheme members are given priority over future year-on-year inflation increases to pensions, the DWP says.IFAonline
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