Early day motion tabled by primary sponsor Sandra Osborne (Labour), on Tuesday, 23 November 2004, in the House of Commons. It is signed by 158 members in total.

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FINANCIAL ASSISTANCE SCHEME

That this House recognises the suffering of those members of final salary schemes who have lost their pensions when their schemes were in wind-up and their need for urgent assistance; welcomes the provision of ??400 million for the Financial Assistance Schemes but is concerned that this is not a sufficient sum to provide the substantial assistance promised by the Government, asks the Government to consider pooling the assets of winding-up schemes, rather than purchasing annuities, and paying pensions on an ongoing basis, as will be the case with the Pension Protection Fund, so that costs to the Exchequer can be spread over a long period of time which would provide an affordable option without overburdening the public funds; notes that if the Financial Assistance Scheme lasts 20 years those people currently in their fifties will only be in their seventies when the Scheme runs out; further notes that estimates suggest that if the Government will commit to pay a sum of ??75 million a year, index linked, for 40 years into a central fund and pool all the assets of the schemes which have not yet bought annuities, promised pensions to non-retired members could be paid to at least the level of the Pension Protection Fund; calls on the Government to acknowledge that further resources will be required to fulfil the Government's desire to rectify this injustice and restore confidence in pensions; and finally urges the Government to settle this matter as soon as possible and in advance of a general election.

Amendments

The Early day motion has received 2 amendments.

40A1

Line 17, after 'pensions', insert 'therefore presses the Government to reconsider the use of 'unclaimed assets' for this purpose.'

40A2

Line 11, leave out from 'if' to 'to' in line 12, and insert 'there is a commitment.'

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Secondary information

Type

Early day motion

Reference

40 

40A1 

40A2 

Session

2004-05

Subjects

Financial assistance scheme Workplace pensions Pensions

Link

View this Early day motion on www.parliament.uk