A new criminal offence of ‘wilful or reckless behaviour’ in relation to pensions will be introduced under the proposals to crack down on abuse of final or average salary schemes.

Bosses who recklessly put workers’ pensions at risk will face up to seven years in prison or face unlimited fines, the government stated in its response to a consultation on enhancing The Pensions Regulator’s powers.

The move is designed to ensure company bosses who allow deficits to escalate to unsustainable levels, or who endanger their workers’ savings through continuous mismanagement, face the law.

Secretary of State for...