Early present for workers fighting for pensions

7:30am Tuesday 18th December 2007

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CHRISTMAS has come early for former workers at a Hampshire firm with a welcome boost to their campaign to recover their lost pensions.

About 1,200 former employees of APW Electronics in Hedge End and Chandler's Ford who lost savings when the company's pension scheme collapsed four years ago have been told they will receive 90 per cent of their value back.

The move to strengthen the Financial Assistance Scheme (FAS), which previously guaranteed only 80 per cent of a pension's value, was expected to help thousands of people across the country who suffered losses as a result of their schemes winding up before April 2005, when the Pension Protection Fund was introduced.

APW's pension scheme collapsed in 2004 and the company wound up last year. More than 600 staff were left with just 20 per cent of their pension after the firm's pension scheme fell through.

Announcing the deal, Work and Pensions Secretary Peter Hain said: "I'm delighted that we are able to announce a settlement that will provide justice for the 140,000 people affected when their schemes were wound up, including members of schemes where the company is still solvent."

In an attempt to close the door to further claims, he described the deal as a "just and final settlement".

It followed a Government decision in March to extend the FAS to cover all workers who lost chunks of their savings, rather than just those closest to retirement.

Paul Taylor, from the APW Action Group, said: "We were after 100 per cent but 90 per cent is better than nothing, and better than the 80 per cent we were guaranteed before."

Mr Taylor, 60, from Hedge End, said: "It's been a long campaign but it's been worth it and hopefully we are more or less at the end of it now. It's been hard work but our MPs have been pretty good at fighting on our behalf."

The pensioners' cause was championed by Eastleigh MP Chris Huhne, Romsey MP Sandra Gidley, Southampton Test MP Alan Whitehead, Southampton Itchen MP John Denham and New Forest East MP Julian Lewis.

Mr Denham said: "This is good news and it's a proper reward for all the local people who have maintained the campaign over several years.

"I was always confident that the Government would be able to deliver more than 80 per cent but I'm pleased that it's now been made official."