Pensions ruling 'brings extra costs risk to firms'

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Employers could be forced to pay billions into their final salary pension schemes if the High Court decides that the UK's pension protection levels are inadequate, experts have warned. Dan Martin reports.

In a case brought by trade unions Amicus and Community on behalf of workers at collapsed company Allied Workers and Steel, the European Court of Justice (ECJ) ruled on Thursday that the government's measures for protecting pensioners was "inadequate".

The ECJ referred the case back to the High Court in London to decide whether those employees who lost their retirement pension savings before the establishment of the Pension Protection Fund (PPF), into which firms contribute, are entitled to more compensation.

Experts said the government's main concern will be to avoid being ordered by...

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By frauke
30th Jan 2007 16:48

Extra Pension contributions?
I'm sure someone will correct me if I'm wrong - but didn't the HMRC say that they would look at excessive pension contributions and not allow them as a trading expense?

So even if the employer wanted to contribute more, the HMRC would disallow it!

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05th Feb 2007 09:49

Government fails over pensions
So the fact that some years ago Gordon Brown sucked another 5 billion per year out of pensions (now worth 7 billion I believe)whilst knowing at that time there was already a pensions short-fall means that he really has made a mess of things. Or have I got this wrong? And of course another decision was to means-test pensions so that saving for a pension is discouraged. A prudent Chancellor? Don't think so!

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