Workers who lost pension savings to get assistance
Workers that have lost their pensions due to their employers going bust could receive financial help from the Government, according to the Department for Work and Pensions.
Mike O’Brien, minister for pensions reform, announced the first six pension schemes backed by solvent employers to be admitted into the Financial Assistance Scheme (FAS). The scheme will help nearly 4,000 people to get their pension savings back.
The companies included are Expamet, whose pension scheme has 1,233 members, Fredk H Burgess, (1,128 members) and Lucas Yuasa, a car-battery maker who had 747 members of its pension scheme. The remaining companies – Dragon Cosmetics, J & D Wilkie and Norman Butcher, account for a further 1,000 people.
O’Brien said: “It’s very worrying for people when their final salary pension winds up under-funded and they don’t know how much of their pension they will receive. In rarer cases this can happen where the company continues trading, so I’m pleased that these six schemes have now qualified for the FAS.
“We have just published regulations to extend the FAS to allow people to receive 90% of their pension from their normal scheme retirement age. And later this year we intend to bring forward legislation to admit more schemes with solvent employers into the FAS.”