04 May 2010
The Pensions Action Group (PAG) recently wrote to each of the
main party leaders with concerns on the future of the UK pensions
system as well as the Financial Assistance Scheme (FAS). The PAG
campaigns for justice for those who lost pension rights when their
occupational pension schemes were wound up.
The group has since expressed disappointment at the responses
that they received from the three main political parties. The PAG
said that the Liberal Democrats' response did not specifically
address issues raised. The Conservative party was more
accommodating but without any firm commitment. No response was
received from the Labour party.
The PAG commented: "If they are at all serious about restoring
confidence in pensions they MUST resolve the few remaining issues
surrounding the FAS, which simply does not deliver anywhere near
the 90% headline claimed both by the Pensions Minister and the
Prime Minister. More specifically, we raised the shortcomings of
the Government's Financial Assistance Scheme (FAS) which will
affect over 140,000 people who lost some or all of their pensions
before 2005. This loss was as a result of the closure of
their occupational schemes, usually when their employer went
bankrupt. The Government had encouraged people to join these
schemes and told them that 'your pension will be safe whatever
happens to your employer'. But whilst the savers in Icelandic
banks, and the pension funds of the rescued banks have been 100%
protected, these pensioners may get as little as 50% of the
pensions they saved for."
