Western Pension Solutions (“WPS”) has responded to the Department for Business, Energy & Industrial Strategy’s (BEIS) update on its consultation on insolvency and corporate governance.
Mike Kennedy, Director and Regional Head of Scotland for WPS commented, “WPS is delighted that the Government is calling for companies to be more transparent about how surplus revenue is allocated to meet demands for dividends, investment in R&D, and pension deficit reduction, and the reasoning behind these decisions.”
“We welcome the news that the Government ‘agrees with strongly held views that there should be no automatic bar on companies paying dividends’ where final salary pension scheme deficits exist. It is important, however, that any proposed dividends do not undermine the affordability of any deficit reduction payments agreed with pension fund trustees and this is something that directors should be sure of before agreeing payments.”
