27 February 2007 - Financial Assistance Scheme – announcement on insolvencies
Given recent representations to the Secretary of State from trustees of a small number of schemes, the Government is extending the insolvency deadline to qualify for the Financial Assistance Scheme to 31 August 2007.
In a written statement, Minister for Pensions Reform James Purnell said today:
“I have received representations from trustees of a small number of pension schemes who are in negotiation with employers in relation to insolvency and qualification for the Financial Assistance Scheme that they would like some further time to complete this process.
“I therefore intend to extend the cut-off date for insolvency events to 31 August 2007. I will bring forward appropriate amendments in due course. In the meantime I will not give effect to the current cut-off date and I will consider whether any further extension beyond 31 August 2007 may be required.”
Notes to Editors
- The Financial Assistance Scheme was set up to provide financial assistance to members of qualifying occupational pension schemes which started wind up, under-funded, between 1 January, 1997, and 5 April, 2005, where the relevant employer is insolvent. In May, this year, the DWP announced an extension of the scheme bringing funding up to 2.3bn in cash terms over about 60 years. This will help an estimated 40,000 people.
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