Imagine you own a large private company that is struggling financially. It could perhaps be rescued if someone were prepared to inject the capital. But theres a big roadblock: it has a deficit-laden pension fund.
Under British rules, there is only one way to ensure the rescuers cash doesnt all get devoured by the pension scheme that is, if you dont fancy paying through the nose for some financier to take on the funds liabilities to pay the workers a fixed income in retirement.
And thats to wait until the very point of failure where the only other option is a disorderly slump into bankruptcy. Then you go to the pensions regulator and beg it to let you deposit the scheme into the UK industrys mutual bailout mechanism the £30bn Pe…
Read the full article at: https://www.ft.com/content/607775d2-b712-11e7-8c12-5661783e5589
