To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the consequences of the deficit in the Carillion pension scheme for pension holders; and if she will make a statement.
28 February 2018
Carillion is the sponsoring employer for 13 separate defined benefit schemes which it acquired as it expanded. Most, or all of the schemes, will enter a Pension Protection Fund (PPF) assessment period during which the PPF will be testing to see if a scheme can secure at least PPF level benefits for its members without further support. If it can, a scheme will buy members’ annuities to pay for their pensions. If not, a scheme will transfer into the PPF with a consequential effect on members’ benefits; In general, those over scheme pension age at the date of insolvency get compensation equal to 100 per cent of their pension initially, while members below that age at the date of insolvency get compensation equal to 90 per cent of their accrued pension, subject to an overall cap.