The Work and Pensions Committee, which Stephen chairs, is to look at the lessons that can be learned from the experience of the collapse of the Norton pension schemes with the aim of ensuring members of collapsed pension schemes are better protected and supported in the future.
The assets in the Norton pension schemes were invested in the Norton Motorcycle Holdings Ltd which went into administration in 2020. The sole trustee of the schemes, Stuart Garner, who was given a suspended jail sentence in March last year, was also the sole director of the company.
Whistleblowers raised concerns with the Pensions Regulator in 2013 and independent trustees were appointed in 2019. The inquiry will consider the Pensions Regulator’s approach to preventing loss of pension assets through fraud or dishonesty and whether there is scope to speed up the process of assessing eligibility for compensation and making payments. It will also examine the role played by bodies such as independent trustees, the Pensions Ombudsman, the Pensions Regulator, the Pension Protection Fund (in its role as administrator of the Fraud Compensation Fund).
Speaking about the inquiry, Stephen said: “The collapse of the Norton pension schemes has caused a huge amount of worry and financial hardship for the members, who fear they have lost their pensions and have been left in limbo when it comes to whether they will receive any compensation at all.
“Our inquiry will look at the lessons that can be learned from this experience to ensure the right regulatory arrangements are in place both to protect pension rights better and ensure compensation is paid promptly when things go wrong.”