US downturn EMI, the music company, last month was reported to have ousted the chairman of its pension scheme’s board of trustees after he had requested the company add £170m (€194m, $278m) to the pension scheme. The move highlights a fundamental flaw in the governance of UK pension schemes.
The interests of the members of the UK’s final salary schemes are meant to be protected by that scheme’s board of trustees. However, often they have very little real independence from the employer that is meant to stand behind the pension scheme and guarantee its good health.
