Pension staff cross their fingers after MG Rover collapse |
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Published
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Sat, 09 Apr 2005 01:00
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With car maker, MG Rover going into administration, about 6,100 of its staff members in the MG Rover pension scheme can not help but wonder what will happen to their pensions.
The Rover pension scheme suffered up to £67m losses in the year 2003 and these deficits could compel Rover to depend on the newly found pension protection fund (PPF) for pension payments. Moreover, possibilities of the pension scheme getting wrapped up completely also stand quite strong with the company going bust.
| However, analysts fear that if a major pension fund like the MG Rover pension scheme is wound up, the PPF reserves wouldn’t last long as any firm’s collapse made pension scheme members within the working age eligible for nothing less than 90% of their due pension at the time of retirement, with retired members being entitled to getting 100% of their pensions.
Claire Ainsley, MG Rover’s largest union, T&G union’s spokeswoman expressed fears for the pensions of their workers in saying that "the black hole in the MG Rover pension scheme is very concerning but we understand the PPF should help." She added that serious attempts were being made to salvage jobs but in case that didn’t happen, everything possible would be done to make pension payments.
The car makers were tight lipped about the pension fund issue; although a spokesperson from MG Rover informed that the status of the pension fund had retrieved since 2003 after a stock market upturn.
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