Prime Minister Theresa May has said that a Government white paper will prevent pensions from being at risk of bosses “trying to line their own pockets”.
In a comment piece published in the Observer, Mrs May addressed the issue of pension deficits in the wake of the collapse of construction firm Carillion.
The construction and outsourcing giant could leave a pension scheme deficit of £900 million, according to the BBC.
Mrs May said that it is the firm’s shareholder’s, not the taxpayers “who will pay the price for the company’s collapse”.
She said that the government would be “stepping in and supporting” the 27,000 workers affected.
Carillion went into liquidation last week and left behind a debt of £1.3 billion and a pension scheme deficit of reportedly £580 million, although some approximations have suggested it could be nearly twice that.
Thousands of suppliers and subcontractors were left without payment when work was paused on building sites, causing many to lash out at big bosses who receive pay rewards.
Mrs May said bosses had been reaping “big bonuses for recklessly putting short-term profit ahead of long-term success".
"In the spring, we will set out new tough new rules for executives who try to line their own pockets by putting their workers' pensions at risk - an unacceptable abuse that we will end," she wrote.
In March the Department for Business is expected to release a White Paper outlining new legislation designed to protect Defined Benefit Schemes.
These schemes are based on either a worker’s average career earnings or their final salary.
The Prime Minister also defended the use of the private sector to complete public projects.
She said the "private sector plays a valuable role helping the public sector".
Carillion was in charge of completing the new £335m Royal Liverpool Hospital, and the £350m Midland Metropolitan Hospital in Sandwell. These projects were delayed when it went into liquidation.
