Pensions could lose protection

PROTECTION for pension schemes from economic turmoil could be stripped away, the Government announced today.

Pensions minister Rosie Winterton said she is consulting companies over rules which state they cannot walk away from liabilities if they wind up a pension fund while restructuring their operations.

Employers want to remove some of the onus on them to honour that debt, arguing it is a barrier to corporate activity.

Many firms are seeing their pension pots shrink as stock markets plummet.Any changes will be introduced next October.