UK. Pensions Regulator warns over dividends
The Pensions Regulator (TPR) warned it would “intervene” in individual circumstances where schemes were being treated unfairly.
In a review of Britain’s defined benefit pension schemes published today the TPR said British corporate profits have grown over the last three years.
But as dividend paid have increased, there has not been an associated increase in payments into so-called deficit repair contributions, in other words, the amount paid to plug pension holes.
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TPR executive director for regulatory policy Andrew Warwick-Thompson labelled the findings “disappointing”, adding: “We are not against companies paying out dividends but employers must strike the right balance between the interests of the scheme and that of its shareholders.”
The pensions watchdog has firmed up its rhetoric in recent months in the wake of a number of high profile pension scheme failures. Last month it revealed plans to ramp up its scrutiny of company proposals to reduce deficits.
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