UK - The GMB union is calling for the Pension Protection Fund to be introduced retrospectively following the wind-up of another UK pension scheme.
Some 535 workers at Hibernia Foods, which produces Sara Lee desserts, stand to lose up to 85% of their pension pots following the company’s collapse.
It is estimated that about 50,000 people at more than 200 schemes have lost most or all of their retirement savings following company failures since 1997.
GMB senior organiser Keith Moore (pictured) said: “The union welcomes the PPF but this is just another example of why it needs to be made retrospective.
“These people were told to make arrangements for their old age but might now have all that money wiped away from them. It is outrageous and the government needs to act quickly.”
The workers – 500 from the firm’s Carnaby Food Plant in Bridlington and 35 from the York office – were part of the Hibernia Foods final salary scheme.
Administrative receiver KPMG, which was unsuccessful in its bid to find a buyer for the firm, said an independent trustee would be appointed to establish the scheme’s exact funding levels.
The secretary of state for work and pensions has told MPs clawback and avoidance measures could be imposed for the people responsible for driving Carillion over the cliff.
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.