Government agrees to pension relief

18 December 2007 / by None
The government has announced that it will be providing support to members of pensions schemes which collapsed when their companies went out of business.

Work and pensions secretary Peter Hain made the announcement on Monday, which will see the compensation paid to workers who lost their pensions increased.

The move is expected to restore 90 per cent of the value of pensions to workers affected when their employers went out of business.

"All those who lost their pensions had done the right thing by saving for later life," Mr Hain stated.

"They played by the rules, only to see their pension savings disappear through no fault of their own."

It is thought that as many as 140,000 people who lost part or all of their savings could be set to benefit from the development.

Welcoming the move, Joanne Segars, chief executive of the National Association of Pension Funds, said that the measure would help to rebuild confidence in the "security and value" of workplace pension schemes.

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