SPC calls for pensions support in economic downturn

The trade body wrote to pensions minister Rosie Winterton urging her to take steps to back the industry in the current climate.

The SPC also wrote to Conservative pensions spokesman Nigel Waterson and Liberal Democrat pensions spokeswoman Jenny Willott to ensure proper debate.

The letter - signed by SPC president Duncan Howorth, SPC council members Roger Mattingly and Kevin Le Grand - outlined number of steps the government could take to support UK defined benefit schemes in financial distress.

It urged the government to consider making a commitment "to stand behind the PPF" in a similar form to the guarantees now commonplace in the banking sector.

The SPC also suggested a temporary "funding amnesty" where The Pensions Regulator allows trustees faced with a sponsoring business in financial distress to defer collection of a number of funding instalments. It also suggested releasing guidance on criteria for schemes to qualify for the easement - enabling faster and less expensive solutions to be reached between trustees and sponsors.

Finally the letter outlined the possibility of a temporary amnesty on the PPF levy "enabling available resources to be channelled into schemes".

The letter said: "The position of the PPF (and the security of members who have already suffered their employers insolvency and their scheme's potential failure) would be no less secure. The real long-term risk, that levy payments for remaining schemes continue on an upward spiral, might also be averted."