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UK government moves to safeguard company pension assets

Staff in pension funds sponsored by bankrupt companies stand to gain greater security for their pension assets if a UK government white paper becomes insolvency law.

If a company goes into liquidation under the Crown preference of insolvency laws it must pay amounts owed to the Inland Revenue and customs and excise, before other creditors. This reduces the amount left for unsecured creditors, including any payments to a company's defined benefit pension scheme. This increases the risk of pension scheme members not receiving the pensions they were promised.

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