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Govt decision &#39will halve income for 1,400 Maxwell pensioners&#39

A row is erupting over the Government&#39s refusal to refund a £30m surplus to one of the Maxwell pension funds, meaning the pension income of 1,400 members of a sister scheme may have to be halved.

Law Debenture, the trustee of the Maxwell Communication Pension Plan – one of the schemes plundered by the late media mogul Robert Maxwell – claims a £40m black hole in the scheme should be plugged with the surplus from the healthier Works scheme, rather than it being retained by the Government to repay deferred National Insurance contributions as part of an agreement in 1992.

The trustee says the Department for Work and Pensions is acting against the spirit of a compromise brokered by former Conservative Social Security Secretary Peter Lilley.

But the DWP says the scheme should stick to the agreement it signed in 1992 and claims it is only in deficit because of poor investment decisions made by the trustee.

A DWP spokeswoman says: “It is the trustee&#39s fault rather than ours. The pension fund&#39s investments have not paid off. The Government cannot set a precedent by compensating people with poor performance.”

However, the trustee insists it adopted a cautious investment strategy.Pensions director Eddie Thomas says: “We absolutely refute the Government&#39s accusation. We followed a prudent and cautious investment policy, putting 70 per cent in bonds and 30 per cent tracking the index.”


Estate planning

There was significant speculation about the possibility of inheritance tax change but the Chancellor was silent on this subject except for a statement that were the nil-rate band to be increased by Statutory indexation it would increase from £250,000 to £255,000 for chargeable transfers occurring on or after 6 April 2003. For a person with […]

Lifeboat forms partnership with Domain

Lifeboat Financial Group has entered into a partnership with mortgage network Domain Financial.The exclusive partnership will enable Domain to offer mortgage expertise to Lifeboat advisers will Lifeboat will offer protection to Domain intermediaries.Domain and Lifeboat aim to expand rapidly to become one of the major players in the market within the next few years.

Gateway is opened by under 250

The Government&#39s savings gateway scheme piloted by Halifax has attracted fewer than 250 people in four months despite a pledge to match an individual&#39s payments pound for pound.Halifax has been working with local community groups since August to sign up people to the scheme, which the Government believes will encourage low-earners and the disabled to […]


The Chancellor gave details of the main personal allowances applicable for tax year 2003/2004. These allowances are shown in the table below. 2002/2003 2003/2004 £ £ Personal Allowance &#45 standard 4,615 4,615 – Age 65 &#45 74 6,100 6,610 – Age 75 and over 6,370 6,720 Married Couple&#39s Allowance &#45 minimum amount 2,110 (B) 2,150 […]

A tough start for 2017 consensus trades

By Kacper Brzezniak Every year, starting around November, investment banks (and fund managers) begin to drip out their outlooks for currencies, rates, economies, you name it, for the following year. The consensus has been largely wrong for the past four or five years; those multiple rate hikes never came, the bond market is still alive […]


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