'Being a good guy boss left me GBP1.2m in debt' - BBC News
For decades plumbing firm boss Murray Menzies paid into a pension scheme for his workers at a time when it was not compulsory. But a series of complex changes to the law mean the 71-year-old is now being pursued for a huge "pension debt" to cover a shortfall in the fund he used.
The irony in all of this is that Plumbing Pensions is not short of assets. According to recent valuations, there's more than enough money in the fund to cover all its liabilities on an ongoing basis. In short, it doesn't need the money.
The "shortfall" is a hypothetical one - only existing because the Section 75 rule uses a particularly expensive method of calculating the costs should the scheme ever decide to wind up.
The chief executive of Plumbing Pensions, Kate Yates, said these were unfair "unintended consequences" of a well-meaning change in the law.
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Trying to help others does not work. Be selfish.
For decades plumbing firm boss Murray Menzies paid into a pension scheme for his workers at a time when it was not compulsory. But a series of complex changes to the law mean the 71-year-old is now being pursued for a huge "pension debt" to cover a shortfall in the fund he used.
The irony in all of this is that Plumbing Pensions is not short of assets. According to recent valuations, there's more than enough money in the fund to cover all its liabilities on an ongoing basis. In short, it doesn't need the money.
The "shortfall" is a hypothetical one - only existing because the Section 75 rule uses a particularly expensive method of calculating the costs should the scheme ever decide to wind up.
The chief executive of Plumbing Pensions, Kate Yates, said these were unfair "unintended consequences" of a well-meaning change in the law.
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Trying to help others does not work. Be selfish.
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