Govt must ‘right past wrongs’ to boost pension confidence
Members of the Pensions Action Group have renewed lobbying MPs to improve their compensation package from the Financial Assistance Scheme.
The group – which represents the interests of 200,000 pensioners who lost out on their benefits when their employers went bankrupt before the introduction of the Pension Protection Fund – is still pushing government to increase levels of compensation pay outs.
PAG has written to the Work and Pensions Select Committee responding to its best practice in workplace pension provision inquiry.
The group said in order to restore confidence in pension saving ahead of auto-enrolment “the mistakes of the past” should be fully rectified.
It urged government to increase compensation paid out under FAS.
It said despite promises to pay 90% of expected benefits the lack of proper indexation and other “punitive clauses” mean some people get less than 50% of what they contributed towards.
PAG told the committee its members should be fully compensated for their lost pensions as they had been following government advice to save for their retirement.