Inflation has eroded the real value of some pre-1997 pensions
Former employees of companies including Goldman Sachs, above, have banded together to form a campaign group called the Pre-1997 Alliance, a report from The Times says.
The article - MPs urged to intervene in fight over pre-1997 pensions – said that former employees of blue-chip companies including American Express, Pfizer, KPMG UK, Hewlett Packard Enterprise and Goldman Sachs have formed an alliance to lobby ministers to put pressure on the businesses, which in some cases have frozen their pensions for years.
It said the dispute centres on pension benefits clocked up in respect of service before 1997. These are not protected by inflation-proofing rules. Employers are not legally bound to raise pension payments at all in respect of pre-1997 service, though many do.
Because of inflation, these payments have sunk each year in real terms, with some pensioners seeing erosion "approaching 60%", according to David Thomas, a leading figure in the Pre-1997 Alliance.
In November, Liz Kendall, the work and pensions secretary, promised to respond to the matter in the new year after the work and pensions select committee heard evidence from so-called frozen pensioners. The alliance has lobbied 85 MPs to state its case.
Last week, Peter Swallow, the Labour MP for Bracknell, raised the issue in the Commons last week calling on the government to force the Pensions Regulator to investigate. Pensions minister Emma Reynolds said the Department for Work and Pensions was "looking to gather information" on the matter.
