British Trade Union Chief Issues Warm Welcome To UK PBGC, And Wants Existing Losses Compensated

The UK government plans to create a British equivalent of the US Pension Benefit Guaranty Corporation (PBGC) has found a friend at last, albeit in a predictable quarter. Welcoming the Pensions Bill published yesterday, Trades Union Congress (TUC) secretary general Brendan Barber said ‘… in particular we welcome the Pension Protection Fund, which will protect employee pensions when a company goes bust. Collective insurance is the sensible way to protect pensions. Radical action, including compulsion, is needed to solve Britain’s growing pensions crisis, but that will wait until the Pensions Commission has completed its work. In the meantime this Bill is extremely welcome. Many of its measures have been at the top of the union pensions campaign agenda for years. In particular we welcome the Pension Protection Fund, which will protect employee pensions when a company goes bust. Collective insurance is the sensible way to protect pensions. However those employees who have already lost out should not be forgotten. Many employees of companies such as ASW were contractually required to join their occupational pension and were made a specific pensions promise by their scheme that has now been broken. They should be compensated. The TUC welcomes the requirement that member representatives make up at least a third of a pension trustees board, although we are concerned about the transparency of the appointments procedure.’