Home Business NewsBusiness Carillion directors “refused to give an inch” to trustees over pension funding

Carillion directors “refused to give an inch” to trustees over pension funding

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20th Feb 18 9:51 am

New letters show

The trustees of the main Carillion pension schemes wrote to the Pensions Regulator (TPR) in 2010 and again in 2013 requesting “formal intervention” to require the company to pay more in deficit recovery contributions. TPR opened a formal investigation into Carillion on 18 January 2018, three days after it went bust.

Rt Hon Frank Field MP, Chair of the Work and Pensions Committee, said: 

“These letters suggest the Carillion directors were contemptuous of their pensions obligations. Over two successive 15 month negotiations they refused to give an inch to the pension schemes. Their private pleading that the company could not afford more was in stark contrast to the rosy picture – and bumper dividends – being presented to the outside world. Richard Adam, the longstanding Finance Director, has particular questions to answer.”

“With characteristic alacrity, the Pensions Regulator started its arduous process of chasing money down from Carillion a few days after it was formally announced there was no money left. I can only assume – and hope – they are going after some of those very generous bonuses.”

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