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| Version 0 | Version 1 |
|---|---|
| 'Greater help' for lost pensions | 'Greater help' for lost pensions |
| (about 4 hours later) | |
| Some 125,000 workers who lost pensions when their employers went bust before 2005 are to be given greater help, the government is expected to announce. | Some 125,000 workers who lost pensions when their employers went bust before 2005 are to be given greater help, the government is expected to announce. |
| Measures will bring them in line with other workers covered by the Pensions Protection Fund, set up two years ago. | Measures will bring them in line with other workers covered by the Pensions Protection Fund, set up two years ago. |
| The move will see 90% of the value of their pensions restored. | The move will see 90% of the value of their pensions restored. |
| Work and Pensions Secretary Peter Hain is due to make a statement to the Commons and a government report into the issue will also be published. | Work and Pensions Secretary Peter Hain is due to make a statement to the Commons and a government report into the issue will also be published. |
| In March, the government's chief actuary Andrew Young was asked to report on the best way to use the assets of failed company pension schemes to make the old scheme more generous. | In March, the government's chief actuary Andrew Young was asked to report on the best way to use the assets of failed company pension schemes to make the old scheme more generous. |
| 'Too bureaucratic' | 'Too bureaucratic' |
| The Financial Assistance Scheme (FAS) is the official rescue net for people whose pension schemes collapsed between January 1997 and April 2005. | The Financial Assistance Scheme (FAS) is the official rescue net for people whose pension schemes collapsed between January 1997 and April 2005. |
| The Pension Protection Fund (PPF) covers members of pension schemes that have gone under since then. | The Pension Protection Fund (PPF) covers members of pension schemes that have gone under since then. |
| Despite various concessions since it was first designed, the FAS remains significantly less generous than the PPF. | Despite various concessions since it was first designed, the FAS remains significantly less generous than the PPF. |
| If this is a meaningful package that finally sorts this out, it will be really, really good news Ros Altmann, Pensions Action Group | |
| It pays out 80% of a worker's "core pension" capped at £26,000 and has no inflation proofing. | It pays out 80% of a worker's "core pension" capped at £26,000 and has no inflation proofing. |
| In contrast, the PPF pays 90% of a more generous pension entitlement, subject to a £26,000 cap and has some inflation proofing. | In contrast, the PPF pays 90% of a more generous pension entitlement, subject to a £26,000 cap and has some inflation proofing. |
| The FAS has been criticised by pension campaigners for being too bureaucratic and not paying out enough. | The FAS has been criticised by pension campaigners for being too bureaucratic and not paying out enough. |
| But one leading critic said the government may finally have acknowledged that the current situation was "unacceptable". | |
| "If this is a meaningful package that finally sorts this out, it will be really, really good news," said Ros Altmann, head of the Pensions Action Group. | |
| "I hope that we will be in a position to say this at last might deliver real hope to the people who have been so wronged." | |
| Clashes denied | Clashes denied |
| Last week, Prime Minister Gordon Brown said he was confident the level of compensation for those reliant on FAS would be improved. | Last week, Prime Minister Gordon Brown said he was confident the level of compensation for those reliant on FAS would be improved. |
| The latest announcement of more financial help comes after reports of clashes with the prime minister and the Treasury on one side and the Work and Pensions Secretary on the other. | The latest announcement of more financial help comes after reports of clashes with the prime minister and the Treasury on one side and the Work and Pensions Secretary on the other. |
| But a Work and Pensions spokesman has dismissed the reports, saying there had been detailed discussions. | But a Work and Pensions spokesman has dismissed the reports, saying there had been detailed discussions. |