Collapse of the Pension Schemes Case Study Example | Topics and Well Written Essays - 1250 words

Collapse of the Pension Schemes - Case Study Example The court did not oblige the government to provide for the compensation of all the victims. The Prime Minister stated that his government has already set up 1.8 billion pounds for its Financial Assistance Scheme. Even though he sympathized with them, the Prime Minister expressed that the solution should be affordable. He also expressed his concern over the decision which may hold the government always responsible for the collapse of any pension scheme which would mean billions of pounds exacted upon the government. Conservative leader David Cameron called for discussions among the government, opposition and representatives of the victims of the collapsed pension scheme to come with compensation packages. David Laws, Liberal Democrat Work and Pensions spokesman, expressed his intent to call for the amendment of the Pensions Bill so compensations could be provided. John Hutton, Work and Pensions Secretary of the Government, stated that he government would carefully consider the ombudsman's report. Society owes a big debt to the victims of collapsed pension schemes since these people have been paying taxes. Even though resources are limited, they still deserve help. The government has to set a good example by helping these hardworking people and think of creative ways to solve the pensions crisis. Henry Bradley and Bob Duncan expressed their delight over the decision. The Guardian: Pensions - Back to Basics John Benson, a victim of the collapsed pension scheme, was delighted over the decision of the high court after having suffered so much. All those affected are entitled to two kinds of justice- individual and social. The former concerns their right to receive pension because they paid their dues while the latter concerns the principle that people who have been working hard all their life are entitled to a decent living. The question of who is responsible and to what degree is still unclear even after the judgment but the court has ruled that the government is partly responsible for encouraging the people to invest in such schemes. The work and pensions secretary, John Hutton, is now responsible for the compensation of the affected person due to legal and humanitarian considerations PM Blair's concern regarding the ruling also deserves attention as it may provide the employer the opportunity to transfer the burden of compensation to the government. The government should see to it that the taxpayers are well informed about the repercussions of employers collapsing pension schemes even though it this possibility has already been minimized. Governments are still the only reliable form of material security. The Turner Commission report and the ruling recognize the role of the government in providing that security. On whether the government should compensate The dilemma that now faces us is whether the government should provide for the pension of its constituents who have become victims of collapsed pension schemes. It has been argued that these people deserve some form of compensation because they paid their dues and have been good taxpayers and it is therefore only right for them to be given what is due to them. If the government does take this responsibility, then