The CBI employers' organisation yesterday gave a decidedly cautious welcome to substantial new powers aimed at allowing the Pensions Regulator to protect members' interests where uninsured companies take over a pension scheme. The regulator will now be able to require contributions from a company seeking to profit from the pension scheme after a buyout, or from its associates.

The CBI acknowledged that it was important that new buy-out mechanisms "are appropriately regulated" to protect fund members and the wider business community, which would face higher levies to the Pension Protection Fund if uninsured buyouts led to more liabilities falling on the pensions lifeboat. However, John Cridland, the CBI's deputy director-general, said the government "must take care it achieves this without ratcheting up the regulatory burden and cost for the majority of businesses".