Pension victims still wait for their money

In December 2007 the Government came up with a £2.9bn package to rescue the pensions of 140,000 people whose employers had gone into administration. However, to date only half of the 14,000 pensioners now due some money have actually received any.

The Government is saying that lack of accurate data is preventing it from making payments, but it has come in for criticism from the Parliamentary Ombudsman for misleading workers.

Agreement to offer compensation came only after a battle lasting five years with the Pensions Action Group. Prior to that the only possibility of recompense was from the Financial Assistance Scheme (FAS), but this was failing to deliver. Now, it has improved, coming into line with its successor - the Pension Protection Fund (PPF) (new in 2005).

Now pensioner victims should get 90% of their core pension - up to a ceiling figure of £26,000.

The disappointment has been the delay by the Government in making payments and since July rules have changed so that more pensioners are eligible to receive their money sooner than before.

The Department for Work and Pensions has stated that trustees and administrators have had to provide accurate data to enable correct calculation of payments.

Criticism mounts however, as the Government came under fire for not taking full care of early retirees due to ill health and who are in need of cash.

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