UK - Workers who lost pension savings when their firms failed should be "pleased" to get 70% compensation from the government, two Labour MPs claim.
But the views of backbenchers Derek Wyatt and Kevin Brennan - whose constituents include Allied Steel & Wire workers in Sheerness and Cardiff prompted a stinging response from the Pensions Action Group which wants “100% justice”.
The government has announced it will pay some 65,000 workers £400m over 20 years in “financial assistance” - well below the amount needed to repay even half their promised pensions.
It has not confirmed how much each member will get from the package, or if all members will be repaid.
Wyatt said: “If I was somebody who was previously not going to get anything, and I was offered anything between 70% and 90%, I would settle for it.
“We have got to remember that it is taxpayers’ money.”
Brennan agreed: “If the government offered to compensate anywhere between 70% to 90% it would be a very significant and pleasing result.”
But Pensions Action Group spokesman and ASW scheme member John Hayter disagreed.
“Our pensions were promised by the government and the financial services Industry and then taken away. We have done nothing wrong and we want our full entitlements - it is not negotiable.”
“The Pensions Action Group has launched an online petition in a bid to persuade the government to restore savings.
More than 300 signatures were collected within days of the launch. PAG spokesman Andrew Parr said: “There are around 60,000 people who have been affected by scheme wind-ups, so if we get that many signatures we will be very happy.”
Businesses are experiencing auto-enrolment data error rates of up to 50%, posing questions over the reliability of pension records, Pensionsync says.
A nationwide survey of committee and local pension board members of the Local Government Pension Scheme has revealed high levels of confidence in all areas of their responsibility.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.