Jail threat for bosses who loot pensions

ROGUE bosses who try to line their own pockets at the expense of company pension schemes face jail in a new Government crackdown.

They would be liable to up to two years in prison for risking the pension savings of their employees.

In the wake of a series of scandals over mismanagement of final-salary pension schemes, Theresa May unveiled plans for a new criminal offence, saying she was determined to give the Pensions Regulator ‘the powers it needs to crack down on the minority of businesses who shirk their responsibilities’.

She said the ‘responsible majority will no longer have to bail out the irresponsible few’.

Work and Pensions Secretary Esther McVey said: ‘We will clamp down on and, where appropriate, punish directors who wilfully or recklessly put pension schemes at risk.’

The promise of action comes with thousands of Carillion workers reportedly facing cuts to their retirement benefits following the firm’s collapse.

Carillion has been criticised for rewarding shareholders with dividend increases as its pension deficit rose last year.

The Government’s move follows calls for the Pensions Regulator’s powers to be strengthened.