Government 'will be forced to compensate pension scheme victims'
With the tabling of a number of amendments to the pensions bill this week, the government will be forced to "properly" compensate the victims of pension schemes that have wound-up, it has been claimed.
Independent policy advisor Dr Ros Altmann has suggested that the provisions of the Financial Assistance Scheme (FAS) are inadequate and should be increased to the same levels of the Pension Protection Fund through scheme assets.
Where scheme assets are insufficient, Dr Altmann called on the government to immediately pay those past retirement age rather than waiting on the "inefficient" FAS.
"This will not require extra funding from taxpayers," said Dr Altmann.
She explained that the tabled amendments to the pensions bill called on the establishment of a "pensions lifeboat" initially funded by government loans, with this money being repaid in assets from unclaimed financial sector funds.
Last month, the Department for Work and Pensions announced the setting up of a review of pension schemes assets that will investigate the methods for making the best use of pension schemes from an insolvent employer that are underfunded when winding up.
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