General Secretary BILL MORRIS Regional Secretary ANDREW BAIRD
NEWS RELEASE Transport House 290 Bath Street Glasgow G2 4LD Phone: 0141 332 7321 Fax: 0141 332 6157
14th April 2003
T&G Scotland calls for changes in pension law At the STUC in Inverness today, T&G Scotland called upon Congress to campaign for legal changes to protect and guarantee occupational pensions.
Speaking at the congress, Jackie MacDowall said:
" Within the last few years there have been a number of cases that have come to light demonstrating the urgent need for action in the area of pensions law and the law of insolvency.
Over 200 workers at the former UEF plant in Ayr and 1100 of their colleagues South of the border, were told they face massive reduction in their pensions following the liquidation of the firms previous owners and the revelation that their pension fund was underfunded by between 9 and 12 million pounds. The end product of this being that UEF workers face a pension reduction of between 60 and 70%.
Meanwhile workers in Aberdeen and Cumnock, employed by the textiles firm Richards were told that their pension scheme was underfunded by around £5 million.
We need legislation to give specific protection in insolvency situations and to ensure that workers are guaranteed the full pension levels they were promised. Action must also be taken to ensure that surpluses in occupational pension scheme funds are distributed fairly to scheme members.
Many will be aware of the campaign of former Scottish Transport Group employees for pension surplus to be returned to pensioners and deferred pensioners. Whilst it is welcome that payments are now forthcoming, they have been substantially reduced by an unfair system of triple and, in some cases, quadruple taxation. Of the £340 million surplus only £128 is being distributed to pensioners with the remainder being deducted and retained by the Inland Revenue and the Treasury. Furthermore, the individual payments themselves, are being taxed at the rate of 22%, and in some cases, elderly pensioners are now being issued tax codes to tax their general and meagre income, on the basis that their payments take them over tax thresholds.
This is an outrage and the campaign, by T&G Scotland, seeking the return of all STG surpluses, is one that has implications for all members of occupational pensions schemes."
ENDS
For further Information please contact Nicola Fotheringham or Jackson Cullinane
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