View more on these topics

Fight for pension redress goes on despite EU ruling

PPF burden could soar for firms after European Court of Justice decides UK pension compensation is inadequate.

The European Court of Justice has ruled that Government protection for people who lost their pensions when schemes went bust was inadequate but has fallen short of ordering compensation.

The case will now go back to the UK High Court to seek compensation for an estimated 125,000 people who lost out when their occupational schemes were wound up.

The outcome could affect the Pension Protection Fund and potentially raise the burden for UK firms if the Government is forced to scrap its current compensation limit of 90 per cent of lost pensions and £26,000 annual cap on payouts to individuals.

Alexander Forbes Financial Services director of actuarial services Colin Mouque says: “It is possible that the Secretary of State will lose his power to reduce PPF benefits in future, which strips away the Government’s only means of controlling runaway costs, which could lead to a crippling burden on UK employers.”

The case was brought by unions representing employees at Allied Steel and Wire and United Engineering Forgings and rested on whether the Government should have done more to protect the schemes under the 1983 EU insolvency directive.

The court ruled that the protection regime was inadequate under the directive but said it was up to the UK courts to decide on any compensation for those who lost out.

Amicus general secretary Derek Simpson says: “We are confident that when this case returns to the UK High Court, our arguments will be upheld and our members who, through no fault of their own, lost all or substantial parts of their pensions, will be fully reimbursed.”

Conservative Shadow Work and Pensions Secretary Philip Hammond says: “Gordon Brown has done untold damage to our pension system over the last 10 years. The Government has been found guilty of maladministration by the Parliamentary Ombudsman. Now this judgment has declared the level of pension protection in the UK inadequate. Yet Gordon Brown still will not listen.”


Union deal scrapped by Towry Law

Towry Law is ditching trade union client FDA for not fitting with its new focus on clients earning over £100,000 a year.FDA, formerly First Division Associates, is a union for civil servants, public bodies and NHS employees.Most of its members earn around £55,000 a year and do not fit in with Towry Law’s focus on […]

Concordia agrees first exclusive with IF

Broker alliance Concordia has agreed its first exclusive deal following its launch last November.It has linked up with HBOS-brand Intelligent Finance to provide exclusive offset products. Concordia is also in talks with a number of other lenders about securing exclusive deals for customers of its five broker members Alexander Hall, Chase de Vere Mortgage Management, […]

Commission warning of principle problems

The Better Regulation Commission says the FSA’s move to principles could be scuppered by supplementary guidance and compliance measures brought in by firms to replace prescriptive rules.BRC chairman Rick Hay-thornthwaite says unless the FSA and industry acts, one layer of prescription will be replaced by another. The BRC is an independent body set up by […]

FSA partly to blame for TCF failures

I have some reservations over the FSA’s treating customers fairly initiative – not the concept, just the initiative – but I had to do a double-take on the article headlined, FSA warns of enforcement action on TCF. It appears that after nearly two decades of regulation, the regulator seems not to have managed to get […]


The Brunner Investment Trust – April 2017

Welcome to the latest update for The Brunner Investment Trust PLC from the Trust’s portfolio manager, Lucy Macdonald. Market Review Global equities have rallied over the first quarter of 2017, buoyed by signs of strengthening growth and optimism over company earnings, although this rally has faded towards the quarter end. US equities posted their strongest […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm