Staff at Turner & Newall (T&N), can now rest assured as the company’s owner, Federal-Mogul has injected £250m into T&N’s pension scheme that has been lying in a frozen state since July 2004.
When automotive-part maker, T&N, went bust on account of massive asbestos claims, the company’s pension fund reported a deficit of £900m and was in negotiations with Federal Mogul and other trustees of the scheme to alleviate the loss. Therefore, Federal-Mogul’s £250m assistance will now prove to be a saviour for the 40,000 employees at T&N looking hopefully at their pension schemes, as the government will support the remaining shortfall with its pension protection fund.
The pension protection fund is a primarily a plan that insures employees, assuring them of their pensions in the event of their company going into administration. If the pension scheme had not been given this aid, workers could be bereaved of a sizeable 60% of their pensions.
According to the scheme, retired members will be given cent percent of their pension, whereas members in the working age group were entitled to 90% of the pensions that would be given at retirement.
However, the plan still needs approval of courts before officially including the T&N case into the PPF. Pension trustees of T&N clearly stated, “The question of whether the T&N scheme will be admitted to the PPF remains to be finally resolved.”
Posted
on : Wed, 28 Sep 2005 17:35 GMT | Pensions News
By : Salim Patel
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