This week, Trustee Director Kevin Dolan spoke to Pensions Expert regarding a potential court challenge that The Pension Protection Fund (PPF) could soon be facing with regards to how they act in company voluntary arrangements.
Kevin said he would be “very surprised” if a judge were to challenge the pensions lifeboat’s position in a CVA, because the idea of the restructuring plans is to arrange a compromise that needs the approval of creditors. He added “for a judge or a court to change that, I would suspect that restructuring legislation would need to be rewritten.”
Kevin previously worked on some of these restructuring arrangements at the PPF, so is well versed in the issue. He explains that all the pensions lifeboat is doing is “protecting its position together with that of its levy payers and the pension schemes”. However, he did acknowledge that the PPF’s position is to make sure the pension scheme is protected as far as possible, and as part of this “it might ask for pension payments to be expedited, and/or security to be put in place.”
Read the full article here.