The shadow pensions minister has said a future Conservative government will not rescue the Pension Protection Fund (PPF) should the compensation scheme fall into hardship, reports The Guardian.
Nigel Waterson said the Tories will continue the policy adopted by the Government and not bail-out the PPF - the body that pays compensation to members of defined benefit pension schemes - if it runs short of funds.
Waterson, speaking at an event hosted by headlinemoney, said it is important to keep the PPF separate from the prevailing government to avoid a mentality that encourages dependency on the taxpayer.
Meanwhile, the PPF says the financial health of the UK's final salary pension schemes improved during December, with the collective deficit falling from £93bn to just £33bn.
Improving stock market returns and bond yields helped strengthen the funding position of schemes over the past year, adds the PPF.
Penalty payments and enforcement policy
Fees as low as 0.04%
Only 9,486 applied for the benefit in 12 months
Women and young people adversely affected
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