Pensions Bill amendment to extend FAS assistance

Pensions reform minister Mike O’Brien said an amendment to the Pensions Bill means members of collapsed pension schemes, such as Northern Ireland’s Desmond and Sons, to receive assistance from the FAS.

These pension schemes fall between FAS and PPF because of the unusual timing of the sponsoring employer becoming insolvent, and then the schemes beginning wind up.

The schemes began winding-up after the FAS qualification cut-off date of April 5, 2005, but they were not eligible for the PPF because the sponsoring employer became insolvent before the PPF came into existence on April 6, 2005.

O’Brien said: "People in schemes such as Desmond and Sons did the right thing and saved for retirement. But due to an unusual set of circumstances they fell outside both the FAS and PPF.

"So I’m delighted that we’re extending FAS assistance to include them.

"We expect this to help about 450 people in addition to the 140,000 we’ve already announced will be protected by the scheme."