Lord Myners – 2016 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Lord Myners on 2016-06-07.

To ask Her Majesty’s Government, further to the answer by Baroness Neville-Rolfe on 6 June (HL Deb, col 627), whether they have the necessary power to pursue pension contribution payments from companies where the parent company is based in the Cayman Islands, the British Virgin Islands, or Monaco.

Baroness Altmann

Each case will need to be considered on its own merits but the Pensions Regulator can use its anti-avoidance powers against targets that are based abroad. Section 303 of the Pensions Act 2004, governing the service of documents abroad, is intended to operate outside the UK jurisdiction The power to enforce any regulatory action against a non-UK company is likely to require the approval or cooperation of the relevant overseas authorities. By and large, these provisions should be enforceable in other EU and Commonwealth jurisdictions.

The Pensions Regulator has demonstrated that it is prepared to use its anti-avoidance powers against targets that are based abroad, as was shown in its handling of the cases involving Sea Containers and the Lehman Brothers group and a complex investigation into the Carrington Wire Defined Benefit Pension Scheme resulted in a £8.5m settlement with two Russian companies.