Prevail

---

for decades, the plumbing-company-in-chief Murray Menzies paid into a pension scheme for its workers at a time, it was not mandatory. But a series of complex amendments to The Law , 71 mean-year-old is now cover more debt "to be followed for a huge" pension to which a gap in the common Fund, which he used.

It started with a call from the person to The Pension Fund. Murray Menzies owed them money. £1,198,300 to be exact.

"I thought he was making a joke," says the semi-retired plumber from Inverness. "After a while, when I realized that he was quite serious, I just thought, it may not be - it may not be possible. "

Mr Menzies, whose case was recently highlighted, no possibility of the payment of money, sold his house and everything he owns just for a fraction of its "debt" to The Pension Fund.

What makes his sense of injustice which is sharper, and that his Only Crime was to try to be a good employer.

We were not The Good guys - pay for a pension, if it was lawMurray Menzies in 1975, as he and his small team of plumbers a job, The Pension , there was no legal obligation to do so.

were signed on Its handful of employees, up to the Edinburgh-based plumbing pensions scheme is One of The Few schemes in the UK several employers, which means it can be accessed by different, unconnected, employers and their employees.

For 40 Years , Mr Menzies paid a monthly employer contribution, typically over £1,000. Then, four years ago, he decided To Retire .

"don't think I can deal with anyone. I was very happy in 2015, when I wrote my last pension cheque," he said.

"I thought," great, another thing out of the way", all of a sudden I say in this letter, I had triggered a section 75. I had no idea what they were talking about. "

He is not alone. Around 560 companies in the UK, joined the plumbing pensions scheme with similar liabilities, many of them former small entrepreneurs have no ability to pay it.

"We are The Good guys - pay for a pension were not, if it was legal," says Mr Menzies. "To talk about something, come back and bite you on the butt. "

What section 75 is to blame and why is this happening? Robert Maxwell pensions scandal and the actions by Maersk led to tighter pension rules § 75 came as a result of a fundamental review of The Pension Fund regulation in The Wake of the Robert Maxwell scandal in the 1990s.

after the media tycoon's death emerged, he million from The Mirror Group pension scheme had been ransacked.

The Pensions Act 1995 introduced a number of reforms, including a "minimum funding requirement" for pension funds. There is also the so-called "section 75 of the pensions-debt", which meant, if an employer "left led" a scheme, you could be persecuted for a failure.

not the time, this was a problem for the plumbing pensions, a well-respected multi-employer scheme, associations and unions was recommended by economy.

The minimum funding requirement was pretty relaxed, and plumbing pensions was financed evaluated fully.

prompted, But a few years later, a pensions crisis, the Danish shipping giant Maersk, another shake-up.

Since 2005, much stricter rules in Force and of this new scale, plumbing pensions is considered to be under-funded.

this meant That the section 75 debt law, and according to The Rules , anyone who "is liable is found in the Schema" self-for a share of the "deficiency".

And since it was a "last man standing "scheme" those who get in it had to, the debts of those who had already left - even though they had No Connection with these companies.

GettyHow many are affected?

560 firmsalready triggered the section 75 debt

140" unincorporated" company - meaning personal assets At Risk .

20no more trade - so no " easements" available

source: sanitary PensionsSome of the hardest small traders who ran "companies without a legal personality, most are" People such as Mr Menzies - who had no idea that simply by retirement, you would trigger enormous financial liabilities.

For this group, without a change in The Law , there is a real chance that you could be losing the roof over their heads.

For other companies, there are several options for the delay in the payments - as the "easements" - But there are other costs.

George Young , of Seamill in North Ayrshire, is not on his company to His Family .

"I'm 70 at the moment. I would like To Retire and leave The Business To My Son - But I couldn't, because he would then be The Debt of heirs," said Mr Young.

GettyThe business has been left, completely worthless, so if I want To Retire , we'll just have to fold upFraser Lawrence
In Arbroath, 51-year-old Bill Dorwood Only in 2016, that His Family company had triggered a liability of More Than £1m a decade earlier

After the expenditure of £30.000, to sell on the legal advice he has obtained, a temporary respite, But the option to go.

"I can't do nothing with him. The Only option I have is to run them into the ground in a relatively orderly way, if I give up the plan, because it is worthless," he said.

"It's a complete liability. There is no One who would talk to buy the, what is, and has always been a good, profitable local businesses. "

Fraser Lawrence, who runs a small plumbing business in Perthshire, is trapped a Small Business man in the case.

"The Business was left completely worthless, so if I want To Retire , we need to just fold up," he said.

"no One will buy The Business because you wouldn't want to be on The Debt . "

For some employers, a further concern is that, if you die (and some of them are now elderly already), The Liability remains and a claim could be made on your property.

Why don't you tell us earlier? The irony in all this is that plumbing is not pensions short of assets. According to recent estimates, there are continually More Than enough money in the Fund, all of its liabilities. In short, it does not need The Money .

The "deficit" is a hypothetical - Only existing because of the section 75 rule, used a particularly expensive method of calculating the cost should decide the scheme, which is ever filed.

The Chief executive of plumbing pensions, Kate Yates, said that these were unfair "unintended consequences" of well-intentioned change in The Law .

And without another law change, She Said , the regime had no other choice than to pursue The Debt .

Kate Yates of plumbing pensions said that the scheme had no other choice But to follow The Debt "There is nothing that can do the control. The scheme is in a really difficult situation," She Said .

"We recognize that the sums of money that employers are asked to pay are staggering, and in some cases totally prohibitive - But if it is not the topic of this debt, it faces financial penalties that could The Members of the benefits in danger. "

But ask A Question that many of the affected, why they were not told earlier?

From 2007 to 2009, there was a short period, as The Law allows members of the scheme pay as little as £1.

Those who say now, in front of huge bills, they were kept in The Dark about this and Only now, learn more about your "debt".

plumbing pensions said, was that in part, the complexity of the collection of data from thousands of individual employers.

There are also many years of lobbying for an exception to The Law .

"If this law came in, has not been detected, it has to work for the plumbing control and it would have added to the terrible consequences for the employer," Ms Yates.

"has spent a lot of time to talk, to help government officials to the possibilities of the employer, while fair to The Members of the system. "

glimmer of hope ', to thwart the Escape'Alan Brown, MP for Kilmarnock in The Last Parliament, knows first-hand the impact this has on small businesses. A local company employs 20 People to close was forced, because they become unsellable.

SNP politician introduced a private members bill in The Last year, with cross-party support, which would have given these employers a certain level of Protection - But in the midst of recent political turmoil, it has run into The Sand .

to His disappointment is shared by the Scottish and Northern Ireland plumbing employers Federation (Snipef), which for years active members are encouraged to plumbing pensions.

Snipef chief executive, Fiona Hodgson has been lobbying for a law change - But you were standing in front of three changes to the UK Pension Secretary in three years, and with so much else going on politically, the chances that it will be resolved in the foreseeable future appear slim.

"We did our best to get something done, But Brexit has thwarted," She Said .

The Department for work and pensions spokesman said The Rules were ensure on the spot, to Finance such systems adequately.

inverness, personal finance, pensions

Source of news: bbc.com