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Volume 57 | Issue 5 | May 2019
Plumbing pensions crisis needs Government action
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The Government has been called on to address growing concerns that a number of plumbing companies could face bankruptcy following the issue of pension bills that are likely to run into millions of pounds. The Chairman of the Work and Pensions Select Committee, Frank Field MP, has questioned Pensions Minister Guy Opperman about what the Government plans to do to solve the issue of plumbers facing pension bills which could reach millions of pounds and leave many employers facing potential bankruptcy. The Plumbing & Mechanical Services (UK) Industry Pension Scheme – better known as Plumbing Pensions – is one of the few multi-employer pension schemes in the UK and, according to current legislation, liabilities from one sponsor become the responsibility of other companies in the pension fund when one of these leaves the scheme. Legislation introduced in 2005 means that businesses that are sold or wound up are required to pay an exit fee that covers the employer’s share of a pension scheme’s liabilities. The so-called Section 75 payments have only now started to be issued by Plumbing Pensions following a data matching exercise to find old employers who didn’t pay what they owed when they left the scheme.
Frank Field MP, Chairman of the Work and Pensions Select Committee
Plumbing Pensions Chief Executive Kate Yates told the Financial Times that the scheme had decided to issue the debt notices “having spent years considering how best to apply the legislation in a fair and equitable manner. Because of the nature of our scheme, having so many past employers, and the retrospective aspect of this legislation, the orphan liabilities are a really significant sum of money.” Ms Yates confirmed that the total value of debts will range from tens of thousands to millions of pounds. In a letter to the Pensions Minister, Frank Field notes that many of the employers
involved are family-owned businesses with no limited liability protection, and are therefore at risk of personal bankruptcy. “This surely cannot be what Parliament intended to happen when passing this legislation,” he argues. He has urged Mr Opperman to let the committee know what the Government plans to do to address this issue, “both for these employers in particular and more widely to review this legislation, which does not seem to be working as it should be.” The Plumbing scheme is reported to have more than 35,000 members – of which 3200 are active – and assets of £2bn. In 2017 the last actuarial valuation found that the pension fund has orphan liabilities of around £400million. A group of concerned stakeholders has set up the Plumbing Employers Action Group (PEAG), which was formed in response to the changes to the Pensions Act. One of the group’s aims is to share the cost of gaining legal advice for employers. There is also a Facebook page dedicated to the issue (www.facebook.com/Plumbers EmployersActionGroup).
See page 52
The art of pipework
Gas Safe registration going unchecked A third (33%) of UK adults admit they’ve not checked if the engineer working on their home’s gas appliances is doing so legally by being on the Gas Safe Register, according to the latest research findings by the official gas registration body. When asked why they hadn’t thought to check if their engineer was working on their home’s gas appliances legally, the research revealed that there’s a lack of understanding and an assumption that all engineers are registered (40%) so people didn’t realise
they had to check (29%). Some of those who let in an engineer without checking their registration information blamed being in a rush (15%) or forgetting to ask (18%), putting their safety at risk. British politeness also stopped 14% of adults checking if their engineer was on the Gas Safe Register as they claimed they were ‘too embarrassed to ask’. Some respondents said that they thought they’d correctly verified that their gas engineer was on the Gas Safe Register by
noticing a logo on the engineer’s website or uniform (28%), or by asking the engineer (13%), rather than checking with the Gas Safe Register. Of those who realised that their engineer wasn’t Gas Safe registered after they had worked on their gas appliances, they admitted they’d wasted money (8%) as the work had to be checked by a registered engineer and, in some cases, re-done (12%). Others (6%) contacted Gas Safe Register to inform them of the illegal work.
Viega’s Megapress connection technology has been specified for a section of pipe relocation work at The National Gallery in London. The press connection system for thick-walled steel tube ensured that the installation of steel pipework for the building’s heating and chilled water HVAC systems could take place without disruption to the gallery space, which remained open throughout the project. For more about the Megapress system see page 38 of this month’s issue.
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