UK - Members of the Turner and Newall pension scheme are set to have their retirement benefits reduced to Pension Protection Fund levels of compensation.
Their scheme has now entered the PPF’s assessment period, during which its eligibility for entry into the PPF will be examined.
Tim Culverhouse, managing director, Alexander Forbes Trustee Services and Independent Trustee of the T&N Retirement Benefits Scheme said it was disappointing that any members would lose some of their pension entitlement.
But he added that compared with the situation at the start of negotiations, when members were facing losses of up to 70% of their pensions, this was a much improved potential outcome.
“The outlook for pensioners and members of the scheme was now far clearer and far more promising that at any point in recent years,” he commented.
During the assessment period Alexander Forbes will remain responsible for the daily management of the scheme and its assets.
Members over normal pension age, ill-health pensioners and those already receiving a spouse’s or dependant’s pension, will be entitled to the 100% compensation level.
Other members are entitled to the 90% compensation level on reaching normal pension age, subject to a cap of £26,050 at age 65. Pension increases will be limited to the period of membership from April 1997 and will be capped at 2.5% a year.
According to the PPF, the T&N pension scheme has current annual expenditure of around £69m and assets in the region of £1bn.
It said these, together with the significant cash recovery secured through the CVA [company voluntary arrangement], would enable the pension scheme liabilities to be met for a “considerable number of years”.
The PPF will now work closely with them to progress the scheme though the assessment period as quickly as possible.
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