UK - Workers at shelving company Dexion are set to lose up to 80% of their benefits after its pension scheme's deficit forced the company into administration.
Unions say Dexion – which had already been struggling under heavy debts – could not afford to put any more money into the scheme.
When the trustees asked for more money to meet their minimum funding requirement obligations at the end of March, it pushed the company into administration. The scheme had an MFR deficit of £20m.
One scheme member said: “Basically, the scheme’s trustees called in the MFR debt. They put it to the company and it obviously bankrupted them.
“But creditors also could have pushed us under – we’ve been walking on eggshells since March.
“Obviously the company couldn’t come up with anything and we’ve got people who could lose up to 80% of their pension.”
So far, 94 workers have been laid off from Dexion, and it is expected that there will be more redundancies before administrator Ernst & Young finds a buyer.
*Last week it was reported that Scottish engineering firm Blyth & Blyth was forced to close because of an insurmountable deficit in its pension fund.
A "substantial" parliamentary bill acting as a "roadmap" for the long-term future of private pensions will lead to a "significant period of calm", Guy Opperman has promised.
The Department for Work and Pensions (DWP) has completed its appointment process for the Single Financial Guidance Body's (SFGB) board, naming three non-executive directors.
Pensions and financial inclusion minister Guy Opperman has launched a simplified two-page annual statement in a bid to provide a best practice template for the industry.
Some 70% of defined contribution (DC) members want to know their scheme is personalised and tailored to their needs, an Invesco language study reveals.