Ros Altmann is highly critical of private equity buyers of DB schemes such as Terra Firma. About 125,000 people lost all or part of their pension following the takeover of their employers by private equity owners, before the setting up of the Pension Protection Fund in 2005.

In that period, Ms Altmann said, too many private equity buyers had made pension schemes the liability of a group's weakest subsidiary, which was later hived off. When that unit collapsed, investors had the healthy business but scheme members, as creditors, had an insolvent sponsor that could not pay them.

"It was happening almost as standard practice before the regulator was created," she said. "That is why trustees should get as much as possible into a scheme before a leveraged buy-out."

Mike O'Brien, Minister for Pensions Reform, said: "I am concerned some emerging business models might not give the same protection for pension schemes as traditionally provided by a sponsoring employer or insurance capital. I spoke about this in a recent debate in the Commons. We need to ensure members’ interests are protected. I want to guard against pension schemes simply being treated as a commodity to be bought or sold."

"Where providers are based offshore, outside the UK regulatory regime, that also causes concern. If that  happens, then we need assurance that appropriate controls are in place." He has issued a consultation on proposed changes to TPR's powers.

Other private equity groups interested in taking over DB schemes include Apax Partners, Prudential Ventures, Pension Corporation, KKR, Delta, Olivant, Goldman Sachs, Paternoster, Brighton  Rock etc

The TUC is now fully aware of the threat posed by such takeovers but it's a pity they did not wake up to the injustice of the loss of people's pensions in 2001. The unions' moves on this were largely very low key and ineffective. It was left to the pensioners themselves to fight for justice. More..