Memorandum by Dave Baker
GOVERNMENT REFUSAL TO ACCEPT PARLIAMENTARY
OMBUDSMAN'S FINDINGS REGARDING PENSIONS MALADMINISTRATION AND
THE RECENT ANNOUNCEMENT OF EXTRA FUNDING FOR THE FAS
Further to my letter to you on 18 April 2006,
regarding the above. I would like to voice my dismay at the extent
of the extra funding to be provided by the Government.
The extension of the already very low level
of funding for the FAS, although welcome, is far from adequate
and is completely unjust.
I was a member of my company final salary pension
for 35 years (Sifam Ltd, of Torquay, Devon) and always believed
my pension contributions to be safe, guaranteed and protected
by law. My case was used by the Parliamentary Ombudsman to represent
solvent company schemes. As my company is solvent I am not included,
even at this stage, in the extra funding for the FAS and at 62
years of age have been left in a very desperate position. My company
was quite legally able to close this pension scheme which was
funded to the MFR level and I always felt assured that this meant
my pension was quite safe. Recently the Government has brought
in protection for solvent company schemes so that employers cannot
walk away from their obligations. This implies that the Government
has recognised the there was a problem in this respect and therefore
we should be included in any compensation policy.
Surely the Parliamentary Ombudsman's recent
report into pension wind-ups should be honoured completely by
the Government to restore faith and justice for pensions of the
future.
I have also lost the SERPS which I would have
built up over the years had I not been obliged to "opt out"
under the rules of the scheme. This would have amounted to approx
£62.00 per week.
The wind up process of my scheme has already
lasted for six years and even when it is complete the most I will
receive is about 15% of the expected pension. I had expected a
£20,000 lump sum plus a £12,000 annual pension.
The Ombudsman has said that solvent companies
should be compensated exactly the same as insolvent ones. I have
always provided for my retirement throughout my working life and
have lost this money through no fault of my own. I never expected
to be in this position with a very bleak retirement to look forward
to.
The Government has been found guilty of maladministration
and should fully compensate all those affected. Otherwise the
younger generation will remain very wary of saving for their retirement.
1 June 2006
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