PPF is to pay the fired Rovers forever and more
More than 6,000 ex-employees of defunct car maker MG Rover are to receive their pensions from the Pension Protection Fund (PPF).
Almost 18 months after applying for rescue, when the company went into liquidation, the MG Rover pension scheme is now the full responsibility of the PPF, which was set up in 2005 to give a safety net for bust schemes and pays 90% of promised pensions.
Nine schemes have now been transferred to the PPF. “We are here to safeguard the savings of 12 million people who are members of eligible defined benefit occupational pension schemes,” said PPF chief executive, Partha Dasgupta.
“The payments we will now make show we are doing just that and those affected can be reassured that their income is derived from a known, trusted and stable source.”
But a sacked ex-worker, who asked not to be named, said: “We were told all that before by the company and I’m really sceptical about any claims made about my pension now.
“I’m due a £39,000 tax-free lump sum and around £7,000 a year for the rest of my life and if this actually happens then I’ll raise a glass to the PPF.
“I contributed to my pension for over 25 years and to have lost some or all of it would have been more than I can take. However, I’m feeling a lot better about everything now.”