The government will stop workers’ pensions being put at risk from “executives who try to line their own pockets”, the prime minister has said.
In the Observer, Theresa May said a government white paper would set out “tough new rules” for company bosses.
It comes after it emerged that the collapse of construction firm Carillion could leave its pension scheme with a deficit of as much as £900m.
She also defended using the private sector to complete public projects.
In her comment piece, Mrs May stressed that it would be Carillion shareholders, not taxpayers, “who pay the price for the company’s collapse”.
She said the government would not be writing the company’s directors a blank cheque, but would be “stepping in and supporting those affected”.
It was earlier reported that Carillion’s defined benefit pension scheme has a deficit of £580m, although this figure could be as high as £900m.
Defined benefit (DB) schemes, which are based on a worker’s final salary or their career average earnings, are currently being examined by the government.
The Department for Business is expected to release a White Paper in March, detailing new legislation on protecting DB schemes.
Chief Secretary to the Treasury Liz Truss said the paper would outline proposals regarding directors who “raid” company pension pots.
She told ITV’s Peston on Sunday that the role of the pensions regulator, as well as company law, would be consulted on.
“Where people filch from the public purse, where there are issues and they let down pension funds, they let down people who work for their company.
“Then they do need to be dealt with,” she said.
