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The defined benefit pension scheme is no longer a creditor – it is also a partner, and needs to work with the employer to keep it alive.
In 2005, the Pensions Regulator (tPR) issued guidelines indicating that the pension scheme was a material unsecured creditor and, like a bank, should act like one. This was the foundation upon which all the principles for clearance by tPR were laid, and upon which a host of financial advisers (or some say locusts) entered the pension marketplace to offer their services to bewildered trustees and employers. The market is still behaving under this assumption today. Seven years on, this is not good. To read more please view my recent piece in The Sunday Telegraph.
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