And they’re off…

I have decided that this blog will be an election free zone – at least for the time being. I suspect that none of the three main parties actually have much of a clue about pensions other than how they can get the over 55’s to vote for them with a bribe or two so let’s not go there and instead talk about a couple of other pensiony issues

First, a cautionary tale for Trustees, with tPR having reported two trustees from the firm GP Noble to the Serious Fraud Office. Charges have been laid and the matter is next due before Southwark Crown Court on 16 April.

Criminal sanctions against trustees have been available since the good old days of OPRA and the Pensions Act 1995 but have (rightly I think) been used sparingly and only in the most serious of cases. We await the outcome of this one with interest but it behooves no one,  not even MPs – and certainly not pension trustees – to think they are above the law

Next, an interesting development in the Cadbury take over saga by Kraft. It seems that the original drafters of the Scheme inserted provisions which will make it all but impossible for Kraft to close the final salary arrangement. As a result, the members are being told that they must either opt out of the Scheme (thereby encouraging a ‘death by a thousand cuts approach’) or face a three year pay freeze. Not a great choice either way and doesn’t say a lot for the due diligence process when the deal was put together does it? Oops!

Finally to public sector pensions and the recent report by the CBI that suggests that the final salary model is unsustainable and needs reform. While not wishing to accuse the CBI of stating the bloomin’ obvious, it nevertheless highlights the issues and proposes some solutions which may be a challenge to the next Government. An estimate that public sector pensions could cost each working person over £330pa in taxes to pay for these pensions is not likely to be much of a vote winner for any party that ignores the subject. Rats – I said I wasn’t going to mention the election – as I’m clearly not able to keep my promises, perhaps I should offer myself to the electorate!!.