UK - A further six pension schemes, including the 6,000 member MG Rover scheme, have transferred to the Pension Protection Fund (PPF), bringing the total number of schemes to come under the PPF's wing to nine.
At the same time, four additional schemes have completed the PPF assessment period without needing to transfer.
PPF chief executive Partha Dasgupta commented: “To have transferred a scheme as large as MG Rover within two years, and to have transferred a further eight schemes during the same period, is a major achievement for the PPF, reflecting the success of the partnership approach it adopts with scheme trustees.”
The PPF announced the transferal of the first three UK pension schemes, with a total of 46 retirees, at the beginning of December. It estimates that by the end of 2007/2008, a further 65 schemes may formally transfer to the PPF.
Independent pensions consultant Ros Altmann said the PPF’s announcement served to highlight the differences between the PPF and its predecessor, the Financial Assistance Scheme (FAS).
Calling for the PPF to take over from the FAS and solve the ongoing problems facing the 10,000 people left pensionless while they wait for the FAS to take action, Altman said:
“No more annuities should be purchased, scheme assets that are available should be transferred to the PPF, to be run as a separate division by the efficient administration that has already been established there, rather than waiting for annuitisation and for the FAS bureaucracy to kick in.”
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