MP’s concern for plumbers

Perthshire MP Pete Wishart has called on the UK government to intervene in a potentially massive retirement issue facing plumbers.

Current law states small plumbing businesses are expected to chip in pensions costs which could saddle staff with massive debts and liabilities when they decide to call it a day.

And he says some plumbers are being forced to keep on working beyond retirement.

On Wednesday, he secured a debate at Westminster to highlight the issue.

Mr Wishart said:“I was shocked and appalled when I found the huge debts that many Scottish plumbers face for simply retiring from family businesses and winding these businesses up. “Many plumbers may face the prospect of millions of pounds of debt and losing life savings and homes.

“These are people who have done nothing wrong and who have contributed to their pension scheme and looked after the pension arrangements of their employees.

“Plumbers are caught up in a living nightmare of what is called‘employer debt’from Section 75 of the Pensions Act. This is where on winding up their business they have to shoulder the employer’s share of the shortfall in the scheme on a“buy-out”basis based on the hypothetical situation the whole pension scheme is wound up and had to buy annuities for all its members.

“Plumbers are avoiding retirement or keeping businesses alive so this massive debt will not be triggered.

“I am tasking the government to resolve this situation and bring forward proposals so that the people who fix our central heating, mend our broken pipes and repair the boiler can face their retirement in peace.”