28 March 2007
Thousands of people can now look forward to security in
retirement following the transfer of a further six pension schemes
to the Pension Protection Fund (PPF).
Among them is the MG Rover scheme which has over 6,000 members -
the largest so far to transfer to the PPF. A total number of nine
schemes have now formally transferred and all have done so before
the PPF's own two year target.
A further four schemes have successfully completed the PPF
assessment period but have not needed to transfer. This means a
total of 13 schemes - representing 7,345 members - have completed
assessment, three higher than the PPF's strategic plan
forecast.
Chief Executive, Partha Dasgupta, said: "To have transferred a
scheme as large as MG Rover within two years, and to have
transferred a further eight schemes during the same period, is a
major achievement for the PPF, reflecting the success of the
partnership approach it adopts with scheme trustees.
"We are here to safeguard the savings of the 12 million people
who are members of eligible defined benefit occupational pension
schemes. The payments we will now make show we are doing just that
and those affected can be reassured that their income every month
comes from a known, trusted and stable source."
PPF Chairman, Lawrence Churchill, added: "When the first schemes
transferred to the PPF in December, we proved we could do what we
were set up to do. Today's announcement further demonstrates our
abilities to pay the right person the right compensation at the
right time.
"It also sends out an important message of reassurance to more
than 100,000 scheme members currently in assessment, and to scheme
members set to come through our doors in the future, that they can
look forward to security in retirement."
The PPF estimates that by the end of 2007-2008, a further 65
schemes may formally transfer to the PPF.
