HC Deb 19 July 2004 vol 424 cc80-2W
Mr. Waterson

To ask the Secretary of State for Work and Pensions pursuant to the written statement of 30 June 2004,Official Report, columns 15–16WS, on underfunded pension schemes (insolvency), what assessment he is undertaking of the number of people who lost pension rights when their scheme was wound up, where the sponsoring employer was solvent, but would have been insolvent had full pension rights been provided. [184355]

Malcolm Wicks

The data gathering exercise undertaken to inform the report published on 30 June focused on underfunded schemes sponsored by insolvent employers. The information requested is not available although we are seeking further information and consulting on the circumstances of schemes winding up underfunded with solvent employers prior to making final decisions on eligibility for the Financial Assistance Scheme.

Mr. Waterson

To ask the Secretary of State for Work and Pensions pursuant to the written statement of 30 June 2004,Official Report, columns 15—16WS, on underfunded pension schemes (insolvency), how many people have lost (a) any and (b) 10 per cent. or more of their expected pension benefits from underfunded schemes wound up by insolvent employers since 1997; and if he will list the schemes whose members were included in the research exercise. [184356]

Malcolm Wicks

It is estimated that(a) some 70,000 members may have lost any of their expected pension benefits and that (b) some 65,000 members face losses of 10 per cent. or more of their expected pension benefits from underfunded schemes being wound up by insolvent employers since 1997. These estimates are consistent with those published on 30 June and exclude any non-pensioners' indexation offered by their schemes as well as excluding those with the very smallest cash losses of less than £5 a week. They are rounded to the nearest 5,000 members and so the estimates of the numbers losing 10 per cent. or more of their expected pension benefits are the same as those previously published for the numbers losing 20 per cent. or more.

We are unable to list the schemes whose members were included in the research exercise as this information was provided by scheme trustees in confidence.

Mr. Waterson

To ask the Secretary of State for Work and Pensions pursuant to the written statement of 30 June 2004,Official Report, columns 15–16WS, on underfunded pension schemes (insolvency), what steps he is taking to ensure that the data gathered covers all cases where companies sponsoring defined benefit schemes have become insolvent since 1997. [184357]

Malcolm Wicks

The report that was published on 30 June provides estimates of the numbers of people facing significant reductions in their expected pensions as a result of schemes starting to wind up underfunded with insolvent employers since 1997. Those estimates were basedon a combination of new information collected, for the purpose of the estimates, from independent trustees, and information already available in the Occupational Pension Regulatory Authority's Pension Schemes Registry. While the new information collected did not itself cover all such schemes, the two sets of information combined provided a firm basis for the global estimates published.

We are, however, working with the pensions industry to collect more information on affected schemes to assist the development and implementation of the Financial Assistance Scheme.