Transatlantic pension regulators sign MoU

Pension regulators on either side of the Atlantic have signed a Memorandum of Understanding (MoU) which will formalise closer co-operation on the protection of benefits.

The UK Pensions Regulator, the Pension Protection Fund (PPF) and the American Pension Benefit Guaranty Corporation reached the deal in Washington.

Its aim is to encourage best practice in the industry and exchange information that will help to safeguard the benefits of pension scheme members.

David Norgrove, chair of the Pensions Regulator, said the watchdog has been working with its US counterpart since 2005 and explained that the MoU will cement this partnership.

Lawrence Churchill, chair of the PPF, added: "This agreement sends a clear signal that there is a high level of co-operation between the various national institutions charged with protecting retirement incomes in an era when many sponsoring employers have a global presence."

The move comes after the PPF, which pays compensation to members of eligible pension schemes in the event of employer insolvency, revealed an increase in its deficit following a rise in claims.