§ Mr. WyattTo ask the Secretary of State for Work and Pensions if he will make a statement on procedures to protect employee pension rights in cases of employer insolvency due to fraud, with particular reference to requirements under the 1980 Insolvency Directive. [135092]
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§ Malcolm Wicks[holding answer 28 October 2000]: The Pensions Compensation Board helps members of occupational pension schemes where the assets of the scheme have been reduced through dishonesty and the employer is insolvent. This is an important protection for scheme members and will act as a last resort for schemes seeking to restore their funding position.
As stated in the Green Paper ("Simplicity, security and choice: Working and saving for retirement", December 2002), we intend to increase protection to those schemes that suffer from acts of dishonesty where the employer is insolvent. In future these pension schemes will be compensated for the full amount lost.
The new Pension Protection Fund will ensure greater protection for members in all cases of insolvency, not just those that arise due to fraud.
We take our obligations under Article 8 of the Insolvency Directive seriously and the European Commission has confirmed that we have met those obligations.