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| Pensions: Tougher jail terms for mismanaging funds | Pensions: Tougher jail terms for mismanaging funds |
| (about 3 hours later) | |
| Company executives could face up to seven years in prison if they mismanage employee pension schemes. | Company executives could face up to seven years in prison if they mismanage employee pension schemes. |
| Work and Pensions Secretary Amber Rudd has proposed a new criminal offence for "wilfully or recklessly" mismanaging funds. | Work and Pensions Secretary Amber Rudd has proposed a new criminal offence for "wilfully or recklessly" mismanaging funds. |
| Plans outlined last year for a maximum sentence of two years in prison were toughened up after public consultation. | Plans outlined last year for a maximum sentence of two years in prison were toughened up after public consultation. |
| Writing in the Sunday Telegraph, Ms Rudd said the law will target "the reckless few playing fast and loose". | Writing in the Sunday Telegraph, Ms Rudd said the law will target "the reckless few playing fast and loose". |
| "If you run your company pension into the ground, saddling it with massive, unsustainable debts, we're coming for you," she said. | "If you run your company pension into the ground, saddling it with massive, unsustainable debts, we're coming for you," she said. |
| She said current rules mean that "acts of astonishing arrogance" by a few company directors are punished with fines "that barely dent bosses' bank balances". | She said current rules mean that "acts of astonishing arrogance" by a few company directors are punished with fines "that barely dent bosses' bank balances". |
| Under the new law, courts would also be given the power to levy unlimited fines for mismanagement of pensions. | Under the new law, courts would also be given the power to levy unlimited fines for mismanagement of pensions. |
| Dodge responsibility | Dodge responsibility |
| The proposal follows calls for reform after one of the biggest pension scandals of the past decade, involving the retailer BHS. | The proposal follows calls for reform after one of the biggest pension scandals of the past decade, involving the retailer BHS. |
| Just one year after tycoon Sir Philip Green sold the retail chain for £1 in 2015, it collapsed along with its two pension schemes. | |
| That meant the loss of 11,000 jobs and put the pensions of 19,000 current and past employees under threat. | That meant the loss of 11,000 jobs and put the pensions of 19,000 current and past employees under threat. |
| The Pensions Regulator concluded that Sir Philip Green sold the business to dodge responsibility for the company's pension scheme. | The Pensions Regulator concluded that Sir Philip Green sold the business to dodge responsibility for the company's pension scheme. |
| MPs called for Sir Philip to be stripped of his knighthood and a Parliamentary report called him the unacceptable face of British capitalism. | MPs called for Sir Philip to be stripped of his knighthood and a Parliamentary report called him the unacceptable face of British capitalism. |
| Sir Philip later agreed to pay £363m into the pension schemes. | Sir Philip later agreed to pay £363m into the pension schemes. |