In particular, Robert Maxwell, the proprietor of the Mirror News Group had suddenly died and it was then revealed that he had been stealing millions of pounds from his employees' pension schemes.
The Goode Report recommended legislation for the participation of scheme members in pensions.
Trusts were a sound legal vehicle for ‘protecting the pension promise’.
In trust documents, employers write the scheme to themselves and nominate all trustees, even in defined contribution schemes where members bear all risks, and this was unsatisfactory since: members earn their benefits by their work and their contributions.
[2]In the Pensions Act 1995 sections 16 to 21, the Conservative government required that employees and beneficiaries had the right to elect representatives to trust boards, unless the employer opted out.