Towards a Pensions Act.

Abstract

Despite a plea for no more legislation, the author admits to having been overtaken by events. To this extent, the paper should be seen as a review of the current position in 1984. Whilst the trust fund might not be an ideal vehicle it did seem to be the best available and probably better than an alternative, totally new instrument. This view is held by the TUC, Gower, the Wilson Committee, and the Occupational Pensions Board (OPB). The principal deficiency at present is that the three relationships: Employee-Employer, Employer-Trustee and Trustee-Employee need to be better defined. Is membership of a scheme enforceable by an employee under contract law—or, indeed, by the employer? If so, are the benefits enforceable by the employee against the employer if the trustees have inadequate resources? Certain more immediate suggestions were (i) a pension fund should be protected against claims by a liquidator, (ii) the trustees on wind-up should be a creditor ranking with unpaid salaries, (iii) separate bank accounts for trustees and employer (this has now come to pass).