A Consideration of Pension Credit and Termination Insurance in the UK

Abstract

SummaryRecent events in the UK, and in particular the scandal associated with the business affairs of the late R Maxwell, have led to a thorough public scrutiny of the laws and regulation of occupational pension schemes. The Pension Law Review Committee has considered and reported on inter alia, the establishment of a "pension compensation fund". The purpose of this paper is to abstract from some of the current details of the debate in the UK and to consider the issues associated with pension credit and termination insurance as alternative means of operating and financing a pension compensation fund, to cover the contingency of underfunding in the event of the insolvency of the sponsoring employer.