First pension payments are in pipeline

Jan 31 2008 by David James, South Wales Echo

SOUTH Wales steelworkers who fought and beat the Government to win back their lost savings should get their first extra payments in May.

Cardiff North AM Julie Morgan today revealed that Pensions Minister Mike O’Brien has told her the normal process will be fast-tracked so Britain’s pensions victims’ savings can be restored.

Former steelworkers at Cardiff’s Allied Steel and Wire plant, which collapsed in 2002, welcomed the news that the first added payments will be paid in four months.

There will still be a longer wait for the full 90 per cent of their pension entitlement to be paid as the Government needs to pass primary legislation.

Mrs Morgan, who has backed the campaigners five-year struggle, said the necessary regulation for the first stage would be put forward in March.

She said: “There’s normally a 12-week consultation but I think this is going to be fast-tracked because it is so widely welcomed.

“The regulation should go through the House in May, by Whitsun recess, and payments should be made by the end of May.

“I am absolutely delighted to hear this news. The long wait, and the long fight, by the ASW workers will finally be over.”

After the first payments are made in May, the Government will still need to go through several other steps to bring in the full deal promised to Britain’s pensions victims.

By August, the payment of arrears to those who have been paid at the lower rate should have started and there will also need to be primary legislation to restructure the residual assets in collapsed pensions schemes. Mrs Morgan said the Government was planning to add this into the Pensions Bill going through Parliament as there will have to be a bar put on the purchase of annuities from existing pensions assets.

In November, the annual index-linking promised in the Government’s deal should take place and the £26,000 cap will be reviewed.

Former steelworker John Benson, 61, of Dinas Powys: “Myself and the chaps from Sheerness have asked for a chat with new Work and Pensions Secretary James Purnell. We want to know that people are going to get 90 per cent of our entitlement. It’s good that things are moving quickly but why can’t they pay the money now and sort the finances out when everything goes through?”

david.james@mediawales.co.uk