Pensions: stricter prison conditions for funds for poor management - BBC News

Secretary work and pensions Amber RuddImage copyright
EPA

Company executives could receive up to seven years in prison if they improperly manage employee pension schemes.

Secretary of employment and pensions Amber Rudd has proposed a new criminal offense for being 'willfully or recklessly & # 39; manage funds.

Plans that were outlined last year for a maximum sentence of two years in prison were tightened after public consultation.

In the Sunday Telegraph, Mrs. Rudd wrote that the law would focus on "the reckless few who play fast and loose."

"If you let your occupational pension run in the ground and it saddles with huge, unsustainable debts, we will come to you," she said.

She said the current rules mean that "acts of astonishing arrogance" are punished by some business leaders with fines "that barely dent the bank balances".

According to the new law, courts would also be empowered to impose unlimited penalties for mismanagement of pensions.

Dodge the responsibility

The proposal follows calls for reform after one of the largest pension scandals of the last decade, involving retailer BHS.

Only one year after the tycoon, Sir Philip Green sold the retail chain for £ 1 in 2015, together with his two pension plans,

That meant the loss of 11,000 jobs and put the pensions of 19,000 current and former employees at risk.

The Pension Regulator concluded that Sir Philip Green sold the company to avoid responsibility for the company's pension plan.

MPs asked Sir Philip to be stripped of his knighthood and a parliamentary report called him the unacceptable face of British capitalism.

Sir Philip later promised to pay £ 363 million in the pension plans.

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