Pension Regulator says companies need reassurances

Businesses in Northern Ireland supporting final salary pension schemes need to be given reassurances that the schemes they sponsor can survive the downturn, solicitors in Belfast may want to know.

The Pensions Regulator has issued a statement on the impact of the current economic conditions and how businesses should proceed with recovery plans if affected.

Some of the issues addressed in the statement include advise to employers to hold consultation with their pension scheme trustees as the downturn continues.

The statement also says that employers need reassurances that the schemes they sponsor can survive the downturn.

According to the organisation's chairman David Norgrove, many employers are facing pressure but "there is no reason why a pension scheme deficit should push an otherwise viable employer into insolvency".

However, he also said that any recovery plan should not be initiated for purposes such as ensuring dividends are paid to shareholders.

The downturn has contributed to falling asset prices and increasing deficits, which is likely to impact upon future wills, trusts and estates.
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