31 May 2006
Last week the Government announced plans to extend financial
help for employees who have lost their pensions because their
scheme wound up under-funded and their employer was unable to make
up the shortfall.
Eligibility for the Financial Assistance Scheme will be extended
to members of qualifying pension schemes who were within 15 years
of their scheme pension age on 14 May 2004, rather than the current
3 years.
Members who were up to 7 years from their scheme pension age
will be considered for a top-up to around 80% of their expected
pension. Those between 7 and 15 years from scheme pension age who
can most reasonably be expected to supplement their retirement
income will be considered for a top-up to around 65% of their
expected pension if they are between 7 and 11 years from scheme
pension age, and 50% between 12 and 15 years.
This means that all eligible members with scheme pension ages of
65 who reach age 65 up to May 2019 will be considered for
assistance, whilst those with scheme pension ages of 60 will be
considered up to 2024.
