Pensions Regulator oversteps the mark

The news that Duke Street Capital has been forced by the Pensions Regulator to inject £8m into the defined benefit scheme of DIY retailer Focus more than a year after the private equity firm sold the business should confirm the worst fears of the industry. When the government acted to enhance the power of the regulator earlier this year it emboldened a body that already had enough tools at its disposal to punish errant company owners it judged were abusing their responsibility as pension fund trustees. The regulator confirmed that the action taken in respect of Focus was made possible by powers granted to it under the Pensions Act 2004 and not by the enhanced powers bestowed upon it by the government earlier this year. Requiring former owners to inject money into pension schemes retroactively is a significant power and it must be reasonably asked whether additional powers are necessary and proportionate to the potential for abuse