Bosses who mismanage pensions funds face seven years in jail

Bosses who mismanage pensions funds face seven years in jail under new powers dubbed ‘Philip Green laws’ set to be unveiled by ministers

  • The new powers for the Department of Work and Pensions grant unlimited fines
  • Sir Philip Green agreed to fork out £363m to save the BHS pension scheme
  • There was a reduction of 18 percent in pension pots but no sanctions for bosses
  • Amber Rudd has unveiled new powers to combat negligence towards pensions 

Bosses who recklessly mismanage pension funds face seven years in jail under a clampdown due to be unveiled by Amber Rudd this week.

The new powers – dubbed ‘Philip Green laws’ – will also see unlimited fines given out by the Department for Work and Pensions.

The Topshop tycoon agreed to hand over £363 million in cash to save the BHS pension scheme following the chain’s collapse last year that left a £571 million deficit.

The shortfall saw an 18 per cent reduction in the pension pots of BHS workers, but no sanction for executives who had run the firm.

Sir Philip Green (pictured) agreed to hand over £363 million in cash to save the BHS pension scheme following the chain’s collapse last year that left a £571 million deficit


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Bosses who recklessly mismanage pension funds face seven years in jail under a clampdown due to be unveiled by Amber Rudd (pictured)

Now a new offence to ‘wilful or reckless behaviour in relation to a pension scheme’ will be unveiled by Ms Rudd amid a review of The Pensions Regulator’s powers.

Company chiefs deemed to have allowed deficits to escalate to unsustainable levels, risk jobs through chronic mismanagement or criminally steal from company pension pots will face ‘the full force of the law’.

A Whitehall source said ‘tycoons who think they can get away with their hands in the till will learn the hard way’.

Since 2015, the Insolvency Service has applied to the courts to wind up 24 companies that have carried out pension misuse. Some 3,750 victims lost £202 million worth of contributions.

Last night, Labour called for Green to be stripped of his knighthood amid the continuing furore about his behaviour.

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