Pensions: Bosses reckless with funds could face tougher jail terms, Rudd warns
Bosses could face up to seven years in jail if they are reckless with their employees’ pensions, Amber Rudd has warned.
The Work and Pensions Secretary said “wilful or reckless behaviour” relating to a pension scheme will become a criminal offence and could lead to an unlimited fine.
Writing in the Sunday Telegraph, she warned those judged to be guilty of such a crime: “We’re coming for you.”
“So if you run your company pension into the ground, saddling it with massive, unsustainable debts, we’re coming for you.
“If you gamble your employees’ futures on risky investments that put a pension scheme at risk, we’re coming for you.
“And if you chronically mismanage a pension scheme and it goes under, we’re coming for you.”
The Government launched a consultation last summer as part of moves to beef up the powers of The Pensions
Regulator (TPR), enabling it to step in more quickly and more often when companies make changes which could damage the pension scheme.
Ms Rudd’s pledge follows the BHS pensions scandal.
A year after it was sold by Sir Philip Green for £1 in 2015, the retailer collapsed into administration, leaving a £571 million pension deficit.
Sir Philip later agreed to pay £363 million towards it to end action against him by the Pensions Regulator.