Unions say pensions Bill should be retrospective

The limitations of the pensions Bill currently going through the House of Commons became clear last month when workers at diesel engine manufacturer Lister Petter in Dursley, Gloucestershire, became the latest to be threatened with the loss of their company pension.

The firm has gone into administration and the workers have been told that they can only expect to receive 10% - 20% of their company pension in retirement.

The Bill will provide protection for workers affected by future company insolvencies through the proposed Pensions Protection Fund. But those who have already lost their pensions are unlikely to benefit.

Trevor Hall, regional industrial organiser of the T&G general union, said: "This robbery of pensions cannot go on. The new laws to protect pensions will help workers in the future but will do nothing for the thousands of people whose pension funds have already been robbed. Serious consideration must be given to making pensions protection retrospective."

Meanwhile, latest figures from the National Association of Pension Funds (NAPF) show that one in four (26%) private-sector final-salary pension schemes is now closed to new members.

The TUC is planning to hold a national demonstration on pensions on 19 June in central London.

* Government proposals to raise the pension age from 60 to 65 in a range of public sector occupational pension schemes are being opposed by a coalition of 20 unions.