Any businesses struggling to fund their pensions deficit may take heart in a statement this morning from The Pensions Regulator.
It issued guidance setting out the flexible approach to recovery plans it will take with any businesses struggling to fund their pensions deficit in the current economic conditions.
Commenting on the statement, David Norgrove, Chairman of the Pensions Regulator said,
"There is no reason why a pension scheme deficit should push an otherwise viable employer into insolvency. But the pension scheme recovery plan should not suffer, for example, in order to enable companies to continue paying dividends to shareholders."
EEF have been talking to The Pensions Regulator about publishing this type of statement so that employers will have a better understanding of TPR's approach and, over recent weeks, we have been actively involved in discussions with The Pensions Regulator about the final drafting of this Statement.
Today's guidance will be welcome words to many of EEF's members.