Memorandum by Morris Weir
After graduating from Nottingham University
in June 1973 I joined the NI Civil Service (age 21) in July 1973
and despite secure employment etc I resigned in Feb 1977 to take
up a career in the private sector with Irish Fertilizer Industries
(IFI) Ltd (formerly Richardsons Fertilisers). I worked for IFI
for over 26 years from February 1977 and was made redundant in
November 2002, when our two shareholders (ICI and the Irish Government)
wound the company up through liquidation. I joined the company's
final salary pension scheme and was reassured through all the
literature I researched (from the company and Government) that
my pension was safe.
In my final 10 years with IFI I managed the
company's Business Analysis function. In this role I had access
to all of the company's business and financial information and,
due to the ending of the company's long running natural gas contract
in 2000, I appreciated that the company was struggling to survive.
Indeed I worked closely with our two final Managing Directors,
Brendan Cummins and his successor Willie O'Brien, on the strategic
review of our business. My 2001-02 review concluded that the business
was not sustainable. I appreciated that the business was vulnerable
but took great comfort from the fact that I had built up 26 years
of pension that would provide a pension in access of £20,000
per annum on my retirement. I did some checking and was reassured
that, because our pension scheme was properly funded (to MFR)
my pension was rock solid.
I understood that the Government took action
following the Maxwell scandal, mainly in the form of more informed
pension trustees and the introduction of the MFR. I, along with
my colleagues, including our Pension Trustees representatives,
were totally shocked to learn that our pensions would give us
a mere 20-25% of our entitlement. Had I known of this risk I might
well have remained in the Civil Service. The Government literature
I had read (1997 Guide to Pension Scheme Trustees and Guide to
MFR) reassured me about my final salary pension. The literature
promoted final pay pension schemes and encouraged workers to join
them to secure their future.
It is only when you move into the 50+ age group
that you appreciate the importance of having financial security
in the form of a secure pension—for 26 years I thought I
was doing the right thing—I am now 54 and thankfully was
able to be reinstated into the NI Civil Service. I will be able
to build up circa 10 years pension entitlements but this will
still leave me some £15,000 short of what I was entitled
to.
I now am told that the FAS, rather than meeting
my £20,000 expected pension when I will be 62, will more
likely give me circa 50% of a £12,000 max and not until I
reach 65. I will have lost £14,000 per year and will
have to wait three years longer than expected.
My son has just started his career in the nuclear
waste industry. He does not have a final salary scheme and how
can I be expected to encourage him to invest in a pension. I was
let down by Government and I would hate my son to be let down
in the same way. I believe that I, and those in a similar position,
should be compensated both to restore my rightful entitlement
and to restore confidence in saving for future retirement.
Fortunately Government had protected Civil Service
pension (at least I can make some recovery). Government also did
a U turn with public sector worker pension and indeed looked after
themselves. Government is also supporting Post Office worker pensions
so I urge you to do the honourable thing and restore my pension
entitlement.
12 June 2006
| 
