UK - MPs are to press the parliamentary ombudsman to order the government to restore benefits to scheme wind-up victims, as well as compensation for distress.
The Pensions Action Group and independent expert Ros Altmann (pictured) have filed eight charges of maladministration against the government, which they claim misled members about the security of defined benefit schemes.
They believe the government should restore their benefits and compensate them for the distress they have suffered.
The Conservatives, Liberal Democrats, Scottish Nationalists, Plaid Cymru and Labour backbenchers have pledged support to the campaign, and will also submit evidence - on behalf of their constituents - to ombudsman Ann Abraham.
The eight maladministration charges against the government are that:
- The Occupational Pensions Regulatory Authority told trustees that “fully funded under the minimum funding requirement” meant full funding for all liabilities on wind-up.
“The Treasury/department for work and pensions ignored actuarial advice to tell members that full funding on MFR did not mean all liabilities could be met on wind-up.
- DWP booklets told the public that final salary pension rights were safe and protected by law.
- Booklets from the Financial Services Authority told members their final salary pensions were “guaranteed”.
- The Treasury oversaw regulatory bodies which told members compensated for misselling to rejoin company sch-emes, which later went into wind-up.
- The DWP/Treasury/OPRA agreed to relax MFR rules which led to worse funding of schemes. They also failed to monitor the adequacy of MFR funding level over time.
- Treasury/DWP/OPRA failed to ensure bulk annuity market offered good value for members’ pensions on wind-up.
- Inland Revenue/DWP/Nat-ional Insurance Contributions Office failed to ensure guaranteed minimum pension for contracted-out members could be secured appropriately.
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