UK - British pensioners who have lost out in pension scandals should receive the same treatment as the compensation promised to Northern Rock savers, according to Ros Altmann, an independent pensions policy adviser.
The government has promised 100% compensation for Northern Rock savers after the bank struggled to survive the international credit crunch.
But Altmann said Northern Rock savers had not been told by the Government that their money was completely safe and protected by law, and that they were only covered by an insurance scheme that protected them up to around £35,000 each.
Turning to scandals which have hit pensioners, Altmann said: “The government has consistently said taxpayers cannot be expected to compensate victims and the Financial Assistance Scheme only offers some of them about 65% of the pension they have lost.
“It is time for the Chancellor to immediately promise to pay all the victims at least the same as they would receive from the Pension Protection Fund – no more ifs or buts, just do it," said Altmann.
Altmann represents members of final salary pension schemes which failed after 1997 and before the Pension Protection Fund started.
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In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.
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