Fmc Pension Fund

EDM number 467 in 1995-96, proposed by Jean Corston on 20/02/1996.

That this House notes that Hillsdown Holdings plc, whose Chairman is Sir John Nott and former Company Secretary was the honourable Member for Milton Keynes South West, bought FMC in 1983 and took over its pension fund; understands that the fund trust deed forbade payment of any fund monies to the employer or amendments to that effect; is appalled that in 1989, Hillsdown merged the FMC pension fund with one of its own funds, changed the rules and transferred ú18.4 million of the fund surplus to Hillsdown Holdings without the knowledge or consent of the pensioners; welcomes the decision of the Pensions Ombudsman that this action constituted maladministration and a breach of trust and that Hillsdown should repay the sum with interest; deplores Hillsdown's stated intention to appeal this decision; notes that the Pensions Act 1995 was passed by Parliament to put an end to such outrageous behaviour and that the Act prohibits such transfers, particularly unless members are notified in advance of the intention to transfer any surplus to the employer; congratulates Radio 4's 'Face the Facts' for bringing this scandal to light; and calls on Sir John Nott and the honourable Member for Milton Keynes South West to use their best endeavours to ensure that Hillsdown complies with the Ombudsman's order and the spirit and intention of the 1995 legislation without delay.

This motion has been signed by a total of 82 MPs.