Protection for pension schemes could be weakened

[TrueBlueTerrier]

Protection for pension schemes could be weakened amid credit crisis, experts warn

http://www.telegraph.co.uk/finance/pers ... -warn.html

Millions of workers could lose out on their pension savings following changes proposed by the Government, experts warned yesterday.

Current rules mean companies must put more cash into a pension scheme if the business is taken over or restructured. But the Government is considering relaxing the rules as companies may be prevented from restructuring without the changes.

Falling share prices have affected pension fund values and left some companies with big pension deficits. But experts warned that the Government's proposals would lead to employers abandoning their final salary pension promises.

Laith Khalaf, a pensions analyst at the asset managers Hargreaves Lansdown, said: "The security of people's pensions must be sacrosanct and the danger is that relaxing the rules opens the door for employers to abandon schemes.

"It is welcome that the Government is looking at ways to support industry, but it is hard to see how this can be achieved in this area without putting workers' pensions in danger." The rule was introduced in 2004 after workers lost their final salary pensions due to employers failing to abide by their pension commitments.

Ministers are expected to announce a decision within weeks. There are 2.7million members of final salary pension schemes.

[BELIAL]

That reads like,"pensions, you won't get one"