UK pension funds to be hit hard over negligence

The UK Government wants to up the ante on pension fund bosses who endanger worker's retirement savings.

Under a new proposal from the UK Government, bosses would face up to seven years in jail for endangering the retirement savings of their workers by allowing deficits to escalate to unsustainable levels, or through chronic mismanagement.

Making mismanagement a criminal offence is part of a wider reform package put forward in response to consultation on enhancing the powers of the pensions regulator.

Amber Rudd, the UK's Secretary of State for Work and Pensions said bosses who put the futures of their employees at risk have got away lightly for too long.

"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," Rudd said.

"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."

Read more: UK GovernmentPensionsAmber RuddSecretary of State for Work
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