Financial Assistance Scheme

EDM number 40 in 2004-05, proposed by Sandra Osborne on 23/11/2004.

That this House recognises the suffering of those members of final salary schemes who have lost their pensions when their schemes were in wind-up and their need for urgent assistance; welcomes the provision of ú400 million for the Financial Assistance Schemes but is concerned that this is not a sufficient sum to provide the substantial assistance promised by the Government, asks the Government to consider pooling the assets of winding-up schemes, rather than purchasing annuities, and paying pensions on an ongoing basis, as will be the case with the Pension Protection Fund, so that costs to the Exchequer can be spread over a long period of time which would provide an affordable option without overburdening the public funds; notes that if the Financial Assistance Scheme lasts 20 years those people currently in their fifties will only be in their seventies when the Scheme runs out; further notes that estimates suggest that if the Government will commit to pay a sum of ú75 million a year, index linked, for 40 years into a central fund and pool all the assets of the schemes which have not yet bought annuities, promised pensions to non-retired members could be paid to at least the level of the Pension Protection Fund; calls on the Government to acknowledge that further resources will be required to fulfil the Government's desire to rectify this injustice and restore confidence in pensions; and finally urges the Government to settle this matter as soon as possible and in advance of a general election.

This motion has been ammended, see 40A1 and 40A2.

This motion has been signed by a total of 159 MPs, 1 of these signatures have been withdrawn.