The state-sponsored 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. consume the high-profile collapse at Monarch Airlines. It’s a sorry anecdote of corporate raiders facing accusations of asset-stripping one of the countrys 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 beget it into another Ryanair.
When that failed, or it appears the owners could still walk away with a profit,following a sophisticated offloading of the debts, including the ailing pension fund – once a major creditor to the business. The fund, or which is in the state-sponsored Pension Protection Fund (PPF),may enjoy been left short when it first collapsed in 2014.
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Source: theguardian.com