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A group of workers who lost their pensions more than two decades ago when the plant they worked for went bankrupt are now urging for the surplus money to compensate them. The workers, who were employed by Allied Steel and Wire in Cardiff, saw their pensions eroded over time because the payments were not adjusted for inflation. Despite initially receiving back 90% of their pensions, they are now calling for the use of a small portion of the £13bn surplus in the Pension Protection Fund to fully restore their pensions. John Benson, one of the affected workers, expressed how the loss of their pensions had shattered their retirement dreams and emphasized the importance of using the surplus to rectify this situation.
The issue of lost pensions dates back to the aftermath of the Maxwell Scandal, where Robert Maxwell embezzled funds from the pension schemes of his Mirror newspaper group employees. This led to the establishment of the Financial Assistance Scheme to safeguard pensioners if their employers went under. This safety net played a pivotal role in supporting the Welsh workers from Allied Steel and Wire in Cardiff when the company collapsed in 2002. While these workers initially received 90% of their pensions, the absence of inflation adjustments has caused the value of their pensions to decline over time.
The campaign for full pension restoration has gained political support, with a group of Senedd members reaching out to the prime minister to address this issue. Former Conservative leader Andrew RT Davies joined in condemning the injustice faced by pension holders who lost out on their entitlement through no fault of their own. The revelation of a £13bn surplus in the Pension Protection Fund has heightened the urgency for action, with calls for a portion of this surplus to be allocated to redress the pension shortfall experienced by the affected workers. The workers are adamant that this surplus, which they view as rightfully theirs, should be utilized to honor their pensions and alleviate the financial burdens they have endured.
Pensions Minister Torsten Bell’s response to the issue highlighted the complexities involved in addressing the pension shortfall and the wider financial implications. The Pension Protection Fund reiterated the need for reserves to safeguard against future claims or unforeseen circumstances, while the Department for Work and Pensions acknowledged the erosion of members’ incomes in recent years. Despite these acknowledgments, the government emphasized the complexity of the matter and the need for a balanced approach in considering how to address the concerns raised by the affected pensioners
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