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Occupational Pensions

The financial assistance scheme will top up those people’s pensions with financial support, to give a maximum income of up to £12,000 a year. The Government are prepared to look again at all aspects of the scheme as part of the current spending review, and my right hon. Friend the Prime Minister yesterday made it clear that"““we will expedite that review and do it as quickly as we possibly can””.—[Official Report, 15 March 2006; Vol. 443, c. 1450.]" Secondly, this Government have led the way in providing greater levels of security for the future. We have replaced the MFR, which is of course a large part of the subject of this report, with new scheme funding arrangements that are more flexible and fit for purpose. The Pension Protection Fund and the new pensions regulator will transform security for members of defined benefit schemes. We do not underestimate the importance of this issue for those people who have been affected by pension scheme closures, particularly when employers are insolvent and cannot make up any deficiency in scheme funding. We will continue to do what we can to help them. That is the fair and sensible way for us to proceed.