Unaware of pension scam?

IT APPEARS that Canal & River Trust (CaRT) trustees are unaware of a pension scam that is happening under their noses, writes Allan Richards.

A recommendation that a trustee read a document that shows that directors may be eligible for massive cash payments has resulted in a request for that document. Presumably, the directors would not give him a copy!

Remuneration Committee

It was trustee, John Dodwell, that was referred to the minutes of a British Waterways remuneration committee meeting dated the 2nd February 2010. The minutes show that a special arrangement was put into place such that directors could opt out of British Waterways' pension scheme but receive massive cash payments instead. However, it appears that the trustee was unable to obtain a copy and had to ask me for one.  That I passed on to him.

More than £2 millions

The decision to give directors the option of cash payments instead of pension benefits follows a attempted government clampdown on the abuse of pension funds by high earners. It is understood that one director, Robin Evans, may have been entitled to receive cash payments of more than £2m.

Whilst it is possible that CaRT trustees were unaware of these payments, the same can not be said for chairman, Tony Hales. He was present at the meeting where the plan was hatched to circumvent the government clampdown.

Full disclosure wanted

CaRT has been asked to provide a full disclosure regarding the payments. It has also been asked to make a full disclosure regarding remuneration for incoming chief executive, Richard Parry.

To date, John Dodwell has made no comment on the scandal.