ROS ALTMANN, the pensions activist, will meet David Blunkett on Tuesday to insist on an increase to government pensions compensation, The Times has learnt.
Dr Altmann, a governor at the London School of Economics and pensions adviser to the Treasury and Number 10, has been invited for a private meeting with the new Secretary of State for Work and Pensions and his deputy, Stephen Timms, to discuss the plight of Britain’s pensioners.
Top of Dr Altmann’s agenda will be the Financial Assistance Scheme (FAS), the £400 million compensation pool for 80,000 people who lost their pensions when their employers went bust between 1997 and April 5, 2005.
Dr Altmann submitted a blistering response this week to the Department for Work and Pensions’ (DWP) consultation on the FAS. “It is nowhere near enough to rectify the injustices suffered by victims of occupational pension scheme wind-ups. More money must be committed,” she said.
Mr Blunkett last week indicated that he would review the funding of the FAS. “We have set aside £400 million for 20 years and we have clearly now got to see how that pans out,” he said.
Workers whose companies collapsed between 1997 and April 5 will share £20 million a year from the £400 million that the DWP has put aside for the FAS.
The scheme will pay a maximum of £12,000 a year and is only open to workers within three years of retirement. Younger employees who lost their savings will receive no assistance.
Dr Altmann said that it was unjust to exclude younger workers, and that those close to retirement were likely to have to wait more than a year to receive any benefits.
A DWP spokesman said that Mr Blunkett and Mr Timms had sought to meet a number of key stakeholders in coming weeks.
Dr Altman, No. 10 & Treasury pensions adviser & London Schoool of Economics governor who
is recommneding an increase in government pensions compensation, to my FAS address & letter May 2005
"Dear Dave
...sincerely hope that you will receive your
pension along with all the others who have lost out so dreadfully after believing Government assurances that they were safe.
I hope that the Parliamentary Ombudsman report will recommend compensation for all of you and am working hard to help
achieve that. You all deserve it!
Ros "