Written question asked by David Laws (Liberal Democrat) on Wednesday, 20 June 2007, in the House of Commons. It was due for an answer on Monday, 25 June 2007. It was answered by James Purnell (Labour) on Monday, 25 June 2007 on behalf of the Department for Work and Pensions.

Sea Containers: Pensions

Question: To ask the Secretary of State for Work and Pensions what steps his Department is taking to ensure that Sea Containers, based in Bermuda, properly funds its UK-based pension schemes; and if he will make a statement.

Answer: This is a matter for the Pensions Regulator.I understand that following an oral hearing before the Pension Regulator’s Determinations Panel on 12 and 13 June 2007, the panel determined that a financial support direction should be issued requiring Sea Containers Ltd. to put in place financial support for the two pension schemes of its UK based subsidiary. This is the first time that the Regulator has used its financial support powers which were introduced in the Pensions Act 2004 to ensure that, when it is reasonable, companies cannot leave a pension scheme with a service company or weak member of the group without guaranteeing the pension promise.The Financial Support Direction will come into effect 28 days from the date of the determination notice or, if an appeal is made to the Pensions Regulator Tribunal, from the date of determination of that appeal. Any person that appears to be directly affected by the determination may appeal to the Pensions Regulator Tribunal within 28 days of the determination notice being issued.

Secondary information