R3 welcomes government’s pensions green paper
In response to the publication today of the government's green paper, Security and Sustainability in Defined Benefit Pension Schemes, Andrew Tate, president of UK insolvency and restructuring trade body R3, said:
"R3 welcomes the government’s green paper on the security and stability of defined benefit (DB) pension schemes, and its commitment to making the system more flexible and more sustainable, while ensuring that any changes do not get in the way of legitimate business activity. The paper explores a number of options for reform of areas such as regulation, the role of trustees and valuation methods, all issues that members of the insolvency and restructuring profession have raised concerns about in the past.
“It is R3’s view that The Pensions Regulator currently has sufficient powers to do its job, but we would welcome proposals for more flexibility regarding the use of its powers and for more engagement with insolvency practitioners and restructuring professionals at an early stage. This would enable The Pensions Regulator to be clear about what outcome it is looking for, which in turn should ensure the best possible terms for members of schemes linked to distressed or insolvent companies, as well as the future of the business itself.
"Insolvency and restructuring professionals have a vital role to play in the future of DB pension schemes of financially distressed businesses, and R3 looks forward to working closely on the issues raised in the consultation with the government and other relevant organisations in the near future.”