Personal Pension  

Regulator seeks £382,000 from individual in DB deal

Regulator seeks £382,000 from individual in DB deal

The Pensions Regulator has issued a £382,000 contribution notice against an individual who took control of sponsoring employer, the Carrington Wire Defined Benefit Pension Scheme.

Earlier this year the regulator announced that an £8.5m settlement had been reached with two businesses domiciled in Russia: PAO Severstal and OAO Severstal-Metiz.

The determinations panel ruled that a contribution notice of £382,136 should be issued to a third ‘target’, Richard Williams, whose company purchased Carrington Wire for £1 from Severstal in 2010 and who benefited from a payment of £400,000 from the Russian group.

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As a result of the sale, a guarantee provided by Severstal to the pension scheme ceased to have any effect, with the regulator and scheme trustees only being informed of the sale after it had happened.

Stephen Soper, executive director for defined benefit at TPR, said that the conclusion of this complex case demonstrates that the regulator will pursue its avoidance powers to protect member benefits, including in cases where targets are based overseas.