Members of the Visteon pension fund have accepted a £28m settlement with former employer Ford over losses suffered when the scheme entered the Pension Protection Fund (PPF).
Scheme members had fought for compensation from Ford after Visteon collapsed with an underfunded pension scheme five years ago (PP Online, 14 April).
They had transferred to the Visteon scheme when the company was spun off from Ford in 2000 and argued that they were misled by the company.
A case, organised and funded by Unite the Union, had been scheduled to reach court later this year.
The settlement, which has been approved by more than 95% of the 14,000 affected members, will see Ford top up PPF benefits in recognition of benefits accrued at Ford.
There will be no additional compensation for benefits accrued after the spin-off.
Unite director of legal services Howard Beckett said: "This settlement is worth millions for eligible former Visteon workers who lost part of their pensions. This settlement was made possible because of the support of Unite legal services.
"The union was prepared to spend millions and campaign for years in order to reach a fair settlement with Ford on behalf of its members. Only a tiny fraction of wealthy individuals could afford this sort of legal support, but thanks to Unite ordinary men and women can access the best negotiators and best legal experts for the cost of the union's monthly subscription.
A spokesman for Ford said the payment would avoid further expense for participants in the case and settle the legal claims they had made against Ford.
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