By Simon Challis

LONDON (Reuters) - The pensions watchdog will have tougher powers under changes being proposed by the government to make firms put more into their pension schemes if it feels members' pensions are threatened.

The extra powers are aimed at giving the Pensions Regulator greater power to protect pension scheme members from a new breed of unregulated pensions buyout firms that acquire the employer that set up the pension scheme or buy the scheme itself to run it for a profit, the government said on Monday.

The powers aim to address growing concerns that buyout companies can take out any surplus left in the pension scheme, while the risk the pension scheme may not have enough to pay members falls on scheme members or the Protection Fund -- the pensions lifeboat fund.

Under the new proposals the regulator would have the power to issue "Contribution Notices" to force firms to put more money into a pension scheme if the effect of something they do "is materially detrimental to a scheme's ability to pay members' current and future benefits" the government said.

For example, if a buyout firm disposed of company assets which undermined the company's ability to meet the pension promises it has made, then the regulator would have the power to make it put more cash into its pension schemes.

At present, the regulator can only issue a contribution notice if a firm seeks to avoid paying a debt that exists in its pension scheme.

The wider powers would also allow it to pursue employers and their owners or investors for payments into their pension funds in a wider range of circumstances than is currently the case, the government said.

"They're giving the Regulator new powers and are broadening its existing powers," said independent pensions consultant John Ralfe.