UK - Members of the state-funded Race Equality Council's final salary scheme have been warned they could lose their death and sickness benefits permanently.
The Home Office-funded scheme has been closed to new members since 1999 and its future is currently under review, CRE (Commission for Racial Equality) scheme faces closure.
But in a letter leaked to IPN’s sister publication, Professional Pensions, the 370 members have been told other benefits are likely to go – irrespective of whether the schemes escapes the axe.
CRE chief executive Daniel Silverstone said the possibility of replacing the group sickness scheme “seems unlikely” and maintaining some level of death benefit cover may not be practicable.
Northamptonshire REC chief executive Paul Crofts said he was outraged by the developments.
“To cancel this cover when we are all getting to an age where the risks get higher is appalling – especially as a government scheme that is funded by the home office,” he said.
“My safety net, if I should die in the workforce or I should become ill or disabled, has been completely pulled from under my feet, and at 50 years of age it will be almost impossible to afford new cover.”
A CRE spokeswoman said the effect on company’s death and sickness benefits was still under consultation and a decision would be made in October.
The CRE said that the pension scheme, which has a £4.5m deficit, had become too costly.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.