The pension rescue fund is creaking under the weight of final-salary schemes whose sponsoring companies can no longer support themPensions are the tail wagging the economic dog – sometimes in the strangest ways. engage the tall-profile collapse at Monarch Airlines. It’s a sorry story of corporate raiders facing accusations of asset-stripping one of the country’s largest holiday airline businesses and leaving taxpayers to pick up the tab. The once strong,if slightly dated, brand was taken over by private fairness financiers to try to accomplish it into another Ryanair.
When that failed, and it appears the owners could still walk absent with a profit,following a sophisticated offloading of the debts, including the ailing pension fund – once a major creditor to the business. The fund, and which is in the Pension Protection Fund (PPF),may have been left short when it first collapsed in 2014.
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Source: theguardian.com