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In a press release on the ruling Conservative Party’s website, the party said that “any company pursuing a merger or acquisition valued over a certain amount or with over a certain number of members in the pension scheme would have to notify the Pensions Regulator, who could then apply certain conditions”.
“In short we will tighten the rules on pensions during takeovers, and increase punishments for those caught mismanaging schemes,” the statement said.
May recently called a general election for 8 June this year, and the UK’s political parties have already begun their respective campaigns.
This statement reflected proposals from the Work and Pensions Committee – an influential cross-party group of politicians from the UK’s lower house – published at the end of last year, following feedback from TPR.
Pensions minister Richard Harrington subsequently addressed the idea of expanding TPR’s powers as part of a consultation on reform of the defined benefit system.
The regulator’s powers were called into question last year during its investigation of the BHS pension scheme. The UK high street chain was sold in 2015 for £1 by the Arcadia group, owned by Sir Philip Green, while the scheme was left with a shortfall of more than £500m (€592m).