Union concerns on pension time trap
30 June 2006
Amicus the UK’s largest
private sector union is concerned that the government may be
granted a time limit for compensation for people who have
lost all or substantial parts of their pension through company
insolvency.
Amicus has led the way in issuing claims on behalf of its
members and now individuals and pension trustee bodies are
following our lead, many motivated by seeing our magazine
article.
The government have applied for the restriction following a
hearing of the union’s case for compensation which was heard last
month in the European Court for Justice. If the government is
successful in its application and loses the European Court case, it
would only have to pay out to those people who have lodged a
claim.
Amicus say they fear that, if approved, the limit could start
from as early as the 13th of July 06. However, the union say they
believe the government’s action can also be regarded as a strong
indication that it is anxious that the European Court judgement
will go against them.
Amicus’ General Secretary, Derek Simpson, said:
"We are committed to defend and fight for
our member’s rights, that is why the union has brought this
legal action.
“It is vital that all our members whose pension has been, or
thinks they may be affected by company insolvency, should contact
their local regional office or visit Amicus’ website to find out
more.”
Amicus and Community unions are taking action against the
Government on behalf of members who lost their pension through
company insolvency. The case challenges the UK Government's
past and present, failure to implement a 1980 European
directive, which should have been in place
by 1983. The directive requires member states
to take measures to protect the pensions of employees in
the event of their employer's insolvency.
The unions have taken out a writ on behalf of 1000 Allied
Steel and Wire (ASW) workers and have successfully had the case
referred to the European courts. The case was heard at the European
Court of Justice (ECJ) on June 1 and the Court’s Advocate Generals
(AG) opinion, is expected on July 13 which will be a good
indication of the final judgement expected shortly after.
Amicus has been instrumental in bring pension changes such as
the Pension Protection Fund (PPF), which came in to force in April
05 and give limited protection for people going forward and the
Financial Assistance Scheme (FAS), which is welcomed by the union
but Amicus have criticized that this provision does not go far
enough to compensate people who have lost their pension also FAS
will only cover a fraction of the 100,000 people caught in this
trap.
Ends
Contacts Brian Gallagher on 07957995947 or Catherine Bithell
on 0207 420 8909
Notes for the Editor,
Amicus and Community issued a High Court claim on behalf of
1,000 pension scheme members of Allied Steel and Wire Ltd (ASW)
from Cardiff and Sheerness who lost the bulk of their pensions when
the company was declared bankrupt in 2002, leaving two pension
funds in deficit.
Article 8 under the directive state's,
"Member States shall ensure that the necessary measures are taken
to protect the interests of employees and of persons having already
left the employer's undertaking or business at the date of the
onset of the employer's insolvency in respect of rights conferring
on them immediate or prospective entitlement to old-age benefits,
including survivors' benefits, under supplementary company or
inter-company pension schemes outside the national statutory social
security schemes."
