S
ST6_aspirant
Member
Hi.
Please refer page 32 of chapter 38: surplus and surplus management
There is a paragraph in bold on top which says:
Legislation may require that the liabilities of the benefit scheme be met whether or not any funds set aside prove to be sufficient, if a benefit promise is made. Thus there is legal obligation on sponsor to make good any deficit even if doing so results in insolvency of sponsor and affects other interests of employees such as their continued employment.
My question is why will it affect the employment of employees? And is it the employees of the sponsor or the company which is benefitting from the benefit scheme.
Please refer page 32 of chapter 38: surplus and surplus management
There is a paragraph in bold on top which says:
Legislation may require that the liabilities of the benefit scheme be met whether or not any funds set aside prove to be sufficient, if a benefit promise is made. Thus there is legal obligation on sponsor to make good any deficit even if doing so results in insolvency of sponsor and affects other interests of employees such as their continued employment.
My question is why will it affect the employment of employees? And is it the employees of the sponsor or the company which is benefitting from the benefit scheme.