12-Jun-2003

Whitehead welcomes establishment of pension protection fund

Southampton MP Alan Whitehead who has been in discussion with pensioners and government ministers about the problems faced by pensioners facing inadequate pensions, today welcomed the news that a pensioner protection fund is to be set up to safeguard the rights of pension holders.

Alan Whitehead, MP for Southampton Test, says,
"There has been too much uncertainty in the pension sector in recent years with people who have worked hard being denied pension rights because of bankruptcies. This new compensation scheme is a step in the right direction to guarantee everyone a specified minimum level of income should the organisation they work for become insolvent."

"The plans, announced by Secretary of State for Work and Pensions Andrew Smith in the House of Commons, will in effect, create a safety net similar to that set up by travel agents to secure holidays in case one of their members goes bankrupt. The pensioner protection fund will guarantee 100 per cent of their pension for existing pensioners and those currently paying into the scheme will be entitled to 90 per cent of the pension already built-up if a company goes under. Plans for early legislation to enforce the pension protection fund are in the pipeline."

ENDS

Contact
Mike Collins in the constituency office on 023 8023 1942 or 07855 328914
Alan Whitehead's London office on 020 7219 5079