Asked by: Paul Beresford (Conservative - Mole Valley)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, with reference to the Third Report of the Work and Pensions Committee of 2023-24 on Defined benefit pension schemes, HC 144, published on 26 March 2024 and the Fifty-Seventh Report of the Committee of Public Accounts of 2022-23 on AEA Technology Pension Case, HC 1005, published on 14 June 2023, if he will publish a redress scheme for AEA Technology pension scheme members by 23 July 2024.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
This is a complex issue, which spans the responsibility of several departments. My officials are in discussion with their counterparts at the Cabinet Office.
As part of the government’s response to the Third Report of the Work and Pensions Committee of 2023-24 on Defined Benefit pension schemes (HC144) we will carefully consider this issue, involving other relevant departments as appropriate and respond in due course.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if he will introduce legislation to allow the (a) Parliamentary and Health Service Ombudsman and (b) Pensions Ombudsman to investigate complaints about the AEA Technology pension scheme.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
Complaints about the AEAT scheme have previously been considered by relevant government bodies, including The Pensions Ombudsman (TPO) and The Parliamentary and Health Service Ombudsman (PHSO). Decisions on these complaints including whether they are able to investigate them have been taken according to the remits given to them by Parliament and other broader statutory constraints.
The Government has no plans to bring forward new legislation for these bodies in relation to this scheme.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential merits of establishing an independent savings and pension commission to better ensure that pensions and savings policies (a) are fit for purpose and (b) avoid such instances as the collapse of the AEA Technology pension scheme.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
No assessment has been made, but the Pension Protection Fund continue to provide statutory compensation where a sponsoring employer becomes insolvent.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking to help people affected by the collapse of the AEA Technology pension scheme.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
On 7 July 2016 the AEA Technology (AEAT) pension scheme transferred to the Pension Protection Fund (PPF).
The PPF is the statutory compensation scheme. It provides compensation to members of eligible defined benefit pension schemes where the sponsoring employer has become insolvent and the scheme is unable to secure its pension liabilities at least at PPF compensation levels.
AEAT scheme members who are over their scheme’s normal pension age (NPA) at the date that their employer became insolvent would receive 100 per cent of their accrued scheme benefits, as calculated at the date of employer insolvency. Those members under NPA at the date that the employer became insolvent would receive PPF compensation paid at 90 per cent of accrued scheme benefits, as calculated at the date of employer insolvency.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what discussions officials in her Department have had with representatives of the Parliamentary and Health Service Ombudsman on a potential investigation into the AEA Technology pension scheme.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
There have been no meetings between Department for Work and Pensions (DWP) officials and PHSO representatives regarding a potential investigation into the AEA Technology pension scheme. PHSO is an independent body accountable directly to Parliament, it would be inappropriate for DWP officials to influence its investigations.
Asked by: Layla Moran (Liberal Democrat - Oxford West and Abingdon)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps he is taking to assist people affected by the failure of AEA Technology pension scheme.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
The Government created the Pension Protection Fund as a lifeboat to support members of defined benefit pension schemes where the sponsoring employer is unable to meet its pension liabilities following an insolvency event. Compensation is paid at 100 per cent for existing pensioners. Individuals below their scheme pension age at the date of insolvency are paid compensation based on 90 per cent of their accrued pension, subject to an overall cap. In April this year the Government increased the cap to take account of individuals who have long service in a single scheme.
The AEA Technology pension scheme went into the Pension Protection Fund in July 2016, and it is estimated that 3,000 people have been affected as a result. Affected individuals are now covered by Pension Protection Fund compensation arrangements.
Asked by: Layla Moran (Liberal Democrat - Oxford West and Abingdon)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what estimate he has made of the number of people affected by the failure of the AEA Technology pension scheme.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
The Government created the Pension Protection Fund as a lifeboat to support members of defined benefit pension schemes where the sponsoring employer is unable to meet its pension liabilities following an insolvency event. Compensation is paid at 100 per cent for existing pensioners. Individuals below their scheme pension age at the date of insolvency are paid compensation based on 90 per cent of their accrued pension, subject to an overall cap. In April this year the Government increased the cap to take account of individuals who have long service in a single scheme.
The AEA Technology pension scheme went into the Pension Protection Fund in July 2016, and it is estimated that 3,000 people have been affected as a result. Affected individuals are now covered by Pension Protection Fund compensation arrangements.