To ask the Secretary of State for Work and Pensions, what steps he is taking to assist people affected by the failure of AEA Technology pension scheme.
7 September 2017
The Government created the Pension Protection Fund as a lifeboat to support members of defined benefit pension schemes where the sponsoring employer is unable to meet its pension liabilities following an insolvency event. Compensation is paid at 100 per cent for existing pensioners. Individuals below their scheme pension age at the date of insolvency are paid compensation based on 90 per cent of their accrued pension, subject to an overall cap. In April this year the Government increased the cap to take account of individuals who have long service in a single scheme.
The AEA Technology pension scheme went into the Pension Protection Fund in July 2016, and it is estimated that 3,000 people have been affected as a result. Affected individuals are now covered by Pension Protection Fund compensation arrangements.