The trustees of British defined benefit – or final salary – pension schemes must be ready for possible employer distress or insolvency to protect their members as COVID-19 impacts the economy, the country’s pensions watchdog said on Thursday.
“Trustees are the first line of defence for savers,” Mike Birch, director of supervision at The Pensions Regulator said in a statement. “The faster they act, the more options and greater time they’ll have to protect members’ retirements.
Trustees should know the signs of distress, and preparations can be made before these signs appear.”
The impact of the COVID-19 pandemic was challenging for employers and the pensions sector, the regulator said.