Proposals for how the Pension Protection Fund should be funded will warn directly linking the likelihood of a fund going bust to the payment of a higher fee will be unworkable.
The Times says the National Association of Pension Funds, will argue that while some companies may be “thousands of times” more likely to default on pensions promises, it makes no sense to charge them thousands of times more in PPF fees than other companies. This view puts the NAPF on a collision course with businesses arguing fees should be calculated according to the risk of any particular scheme failing. But, the NAPF counters that it is unrealistic to expect weaker companies to pay more, which could have the effect of driving them into further trouble in the first place, perhaps l...
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