05 February 2009
The Pensions Regulator is in talks with the insurance industry,
including the Association of British Insurers and the Financial
Services Authority, to clarify who would provide compensation for
members in the event of an insurer defaulting on its
obligations.
Uncertainty currently exists over whether the Pension Protection
Fund or the Financial Services Compensation Scheme would be
responsible for compensating members whose company pension benefits
have been secured with an insurer by way of a buy-in deal.
Jason Coates who is a partner at Wragge & Co, said: "This
confusion needs to be clarified urgently. It is causing great
concern for pension scheme trustees, who are worried about members'
benefits, particularly in these uncertain times for the financial
services industry."
