UK - Members of the Ballast Wiltshier Retirement Benefit Plan - who are set to lose 70% of their benefits - are lobbying the government for pension compensation.
The scheme, which has 300 pensioners and 1400 deferred members, has been put into wind-up after administrator Deloitte & Touche said it was unable to meet contribution claims.
Independent Trustee Services – appointed to represent scheme members at the stricken construction firm – said members could expect only 29% of benefits. The scheme has assets of £42m with members expecting payouts of £98m.
Ballast UK was placed in administration in October last year when its Dutch parent, Ballast Nedam, cut its ties with its beleaguered subsidiary.
Under changes to priority orders for scheme wind-ups, which came into force in May, Ballast member benefits will be higher than the initial estimated payout of 17%.
But ITS claims further compensation is unlikely.
It expects members to be ruled out from qualifying for the government’s Financial Assistance Scheme – set up in May to provide compensation for workers who lost pension savings when their firms collapsed.
ITS believes the rescue package will not cover funds which began wind-up after May 14 – the date the compensation scheme was announced – and the introduction of the Pension Protection Fund next year.
ITS said two smaller Ballast funds – including the Nedam Pension Scheme – were in administration but had not yet been forced into wind-up.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers