The Pensions Regulator could be handed sweeping new powers, the Minister revealed, while appearing before the Work & Pensions and Business, Energy and Industrial Strategy committees on Carillion yesterday.
Work and Pensions Secretary Ms McVey launched a long-awaited White Paper, which included robust new measures to deal with those who recklessly endanger pension schemes on Monday
The programme was quickly branded “a damp squib”, by Tom Selby, senior analyst at AJ Bell.
The White Paper does include some provision to take action in relation to past events, however.
Ms McVey said: “We are already strengthening the actions that the regulator can take. That is happening straight away.
“There are some finer points that need some further consultation to make sure that we get it correct.
“But those other things, as soon as we have time on the floor to make that primary legislation, we will do it.”
A balance would need to be struck if the new powers are granted, according to Malcolm McLean, senior consultant at Amersham-based SIPPs provider Barnett Waddingham.
He said: “Clearly the extra powers of sanction that the regulator will henceforth possess will need to be exercised with care and discretion, if ‘good’ employers are not to be put off continuing to support their schemes in the best interests of their employees.”
As well as plans to introduce a criminal offence to punish bosses, who wilfully or recklessly endanger pension schemes, the White Paper also lays out an intention to give the pensions watchdog powers to slap company directors with disqualification.