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ASW: Workplace Pensions

Answer

The Department recognises that the Allied Steel and Wire pension scheme was among the earliest of schemes to benefit from the Financial Assistance Scheme. The Minister for Pensions met with some Allied Steel and Wire workers and heard first-hand how members have been affected by aspects of the Financial Assistance Scheme, including the issue of the indexation of pre-1997 pension accruals.

The erosion of income due to the high inflation of recent years has led to this matter being considered by the Work and Pensions Select Committee (WPSC) in its recent inquiry into Defined Benefit pension schemes. On 30 April, the Government response to the recommendations in the WPSC’s report was published.

The government will consider and reflect on what we have heard on the issue of Pension Protection Fund and Financial Assistance Scheme rules on the indexation of pre-1997 pension accruals. Any change in this area has significant implications on public finances for both the taxpayer funded Financial Assistance Scheme and for the levy funded Pension Protection Fund. These are complex matters requiring a balanced approach for those receiving compensation, levy payers and taxpayers. This is an important issue and one where we will continue to work with the Pension Protection Fund.

Secondary information

Type

Written question

Reference

HL7501

Session

2024-26

Subjects

Workplace pensions ASW

Link

View this Written question on www.parliament.uk