Written question asked by Mike Hancock (Liberal Democrat) on Wednesday, 15 December 2004, in the House of Commons. It was due for an answer on Tuesday, 21 December 2004. It was answered by Malcolm Wicks (Labour) on Tuesday, 21 December 2004 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 it his policy to ensure that, when the Pension Protection Fund begins in April 2005, it will retrospectively include pension funds which have failed since the passing of the Pensions Act 1977; and if he will make a statement.

Answer: Mr. Hancock: To ask the Secretary of State for Work and Pensions if he will make it his policy to ensure that, when the Pension Protection Fund begins in April 2005, it will retrospectively include pension funds which have failed since the passing of the Pensions Act 1977; and if he will make a statement. [206235] Malcolm Wicks: In May the Government announced the introduction of the Financial Assistance Scheme. The FAS will offer help to people who have lost out on their defined benefit pension due to their pension scheme winding up underfunded as their employer has been unable to make up the deficit. Schemes that commenced winding up from 1 January 1997 will potentially be eligible for the FAS, subject to the other entry rules. Schemes starting to wind up right through to the introduction of the Pension Protection Fund will also be potentially eligible. The Pension Protection Fund compensation will apply to the future and will not be retrospective. To qualify for entry to the Pension Protection Fund a qualifying insolvency event must occur after the introduction of the Pension Protection Fund, and the scheme must not have commenced wind up before then.

Secondary information