UK - Members of the stricken Nikko Europe Pension Fund fear that remaining assets are being wasted by winding-up delays.
Nikko Europe’s Japanese parent, Nikko Cordial Securities, put the scheme into wind-up in 2001.
Since then, members – who stand to lose up to 40% of their benefits – say tens of thousands of pounds have been spent on trusteeship and legal costs.
One member, who did not want to be named, blamed the delays on “poor administration and record keeping”. And he said the problems would be exacerbated by company plans to send a “confusing” letter to members.The letter, he says, asks members to decide whether to take the transfer value, but fails to state whether the company will be making good on any of the £14m deficit.
He said: “We want Nikko to make a decision before sending the letter out to prevent more costly delays and further correspondence. It seems to be letting the fund assets trickle away.”
But a Nikko spokesman said the company “absolutely refuted” any suggestion that people were dragging their heels or that there had been poor administration of the scheme.
He said: “The winding up of any scheme is a complex task and the trustees of the Nikko Europe scheme have been working extremely diligently to get to the point of being able to set out the options for members.
“Indeed some schemes have taken many more years to get to where we have got to in just three years.”
Nikko said letters outlining the options would be sent out in the “next few months” and a decision about any deficit would not be made until members indicated what they wanted to do.
The spokesman said: “Of course we understand members’ concerns, but would stress that no decision has been taken at this stage.”
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