UK. Seven years in jail for bosses who recklessly risk pensions
Devil-may-care directors who recklessly put workers’ pensions at risk will face up to 7 years in prison or unlimited fines.
A new criminal offence of ‘wilful or reckless behaviour’ in relation to pensions will be introduced under the proposals to crack down on abuse of final or average salary schemes.
Secretary of State for Work and Pensions Amber Rudd, said:
The vast majority of bosses take their responsibilities seriously and look after their workers’ retirement funds.
However, for too long the reckless few playing fast and loose with people’s futures have got away scot-free. Acts of astonishing arrogance and abandon punished only with fines, barely denting bosses’ bank balances.
Meanwhile workers who have done the right thing and saved for retirement, confident their investments were safe, are left facing a leaner later life.
That cannot be right, which is why, for the first time, we’re going to make wilful or reckless behaviour relating to pensions a criminal offence.
The move is designed to ensure company bosses who allow deficits to escalate to unsustainable levels, or who endanger their workers’ savings through chronic mismanagement, face the full force of the law.
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