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Pension Rescue Scheme Help 13 

BBC News

United Kingdom

January 24, 2005

Protesting pensioners
Pensioners protest outside Labour's 2005 conference

 

Thirteen people have so far received payments from the Financial Assistance Scheme (FAS), set up to help members of pension schemes that have gone bust. 

The figures for the £400m scheme, set up last September, have been revealed by the Department for Work & Pensions. 

The 13 are former employees of the Cardiff-based steel company Allied Steel & Wire, which collapsed in 2002. 

The FAS was set up to help 80,000 people whose schemes collapsed before the Pension Protection Fund was set up. 

Official rescue: 

The FAS is the official rescue net for those schemes which collapsed between January 1997 and April 2005. 

The Pension Protection Scheme will cover members of pension schemes that have gone under since then. 

The first 13 payments from the FAS were made in December 2005. 

But a DWP spokeswoman said: "This is just the start and there remains a considerable amount to be done to ensure that all those eligible for help start getting it." 

Last September, the trustees of nearly 400 insolvent pension schemes were given six months to lodge claims with the FAS. 

The DWP spokeswoman added: "In order for us to establish who is eligible and what level of help they might get, we need scheme trustees and administrators to provide us with the relevant information before 28 February." 

What it pays:

The FAS will top up pensions to 80% of their expected level, but is focusing its attention on those who are close to retirement. 

This means that initially, only those who are over 65 or who would have reached their normal retirement age by 14 May 2007 will be able to claim. 
It has been estimated that 15,000 people come into these categories. 

Terminally ill members can also claim regardless of age. 

The promised pension will be capped at £12,000 a year. 

The FAS excludes insolvent pension schemes where the employer continued to trade. 


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