Written question asked by Vincent Cable (Liberal Democrat) on Wednesday, 13 November 2002, in the House of Commons. It was due for an answer on Monday, 25 November 2002. It was answered by Ian McCartney (Labour) on Monday, 25 November 2002 on behalf of the Department for Work and Pensions.

Dept for Work and Pensions

Question: To ask the Secretary of State for Work and Pensions, If he will make a statement on the protection awarded to final salary scheme pensioners when companies are wound up. (Failed OPQ).

Answer: Dr. Cable:: To ask the Secretary of State for Work and Pensions if he will make a statement on the protection awarded to final salary scheme pensioners when companies are wound up. [81301] Mr. McCartney: When a company and its final salary pension scheme are wound up, pensioners are protected by the 1995 Pensions Act and regulations. A statutory priority order ensures that, after additional voluntary contributions, pensions in payment are secured ahead of other benefits, so that those already in retirement continue to receive a pension. The employer debt provisions place a debt on an insolvent company's estate that is calculated, in part, to bring a wound up scheme's assets up to a level sufficient to meet the notional costs of buying annuities for pensioners. The independent trustee provisions require insolvency practitioners to make sure that schemes that are winding up have one trustee who is independent. Trustees are required to report their progress regularly to Opra.

Secondary information

Type: Written question
Reference: 81301; 395 c15-6W
Session: 2002-03
Question not reached: Yes
Subjects: Company liquidations Insolvency Pensioners Protection Workplace pensions Pensions Pension rights
Link: View this Written question on www.publications.parliament.uk