Broker Collegiate is using the example of the disgrace and bankruptcy of Jonathan Aitken to lobby the House of Commons against part of the new pensions bill, which it argues is unnecessary.
The broker firm has written to MPs this week regarding clauses 11 to 16 of the Welfare and Pension Bill.
The clauses stop creditors being able to appropriate the personal pension fund of bankrupts.
Collegiate claims the Government is trying to prevent bankrupts from becoming a burden on the State in later life, but says in reality it merely switches the burden to another department.
Moreover, Collegiate has already launched a policy to protect policyholders against this eventuality.
The London-based firm designed the policy following the Landau ruling in the High Court 18 months ago which confirmed that individuals would have to surrender their personal pension benefits to the Trustee in Bankruptcy.
"But given that the Inland Revenue and Customs and Excise are often the largest creditors it seems that, rather than removing such a burden from the State, the Bill merely transfers it from one department to another," the letter claims.
Collegiate's policy not only protects the policyholder against the consequences of losing their personal pension due to bankruptcy, but also does not deny creditors access to the bankrupt's pension fund.
More than 50 MPs have replied to date, but only to acknowledge receipt of the letter.
Lawyers are still deliberating over whether Aitken is to receive his Commons pension.
The Welfare and Pensions is still waiting its third reading in the House of Commons.
