MY OFFICE has received a number of enquiries from retired and working age members of the Oldham Chronicle Pension Fund to establish if they will receive the full value of pensions in the future.
The Pensions Protection Fund provides compensation to members of eligible defined benefit pension schemes in the event of insolvency where the pension ‘pot’ doesn’t contain enough funds to cover the cost of pensions.
To help fund the Pension Protection Fund, compulsory annual levies are charged on all eligible schemes.
For members who have already reached retirement age they will broadly see 100% of their pension protected, and for those yet to retire they will receive protection of 90% of their pension when they reach retirement age [Further information can be found in this factsheet.]
The information held by the PPF relates to information held as of 2014 and confirms;
- Scheme membership: 218.
- The member split: 91 deferred, 50 pensioners, 77 insured (meaning their benefits have already been secured with an insurance company, so in effect are unaffected by the insolvency and would not come into the PPF if the scheme transfers in due course).
- The deficit on a PPF basis was £5m.
- The scheme is controlled by 20-20 Trustees Ltd (an independent, professional trustee company).
At the moment all enquiries by pension fund members should be made to the scheme directly and not, at this stage, to the Pensions Protection Fund.
Below are contact details for the trustees, 20-20 Trustees Ltd:
T: 0161 211 5353
Jim McMahon OBE MP 