Pre-1997 Injustice
The Minister will be well aware that there is no requirement for pension indexation for service before 1997. The Pre-1997 Alliance speaks for more than 50,000 pensioners from the company schemes listed below with the number of years each scheme has been without increases since 2002. We have reason to believe that these companies received professional advice that pointed out the unintended “opportunities” of Pension Act 1995. The subsequent changes in their practice of annual payment of discretionary increases may reflect the effect of this advice.
Portcullis House Event on 9/9
The relevant changes contained in Bill 255 offer little hope of any rectification of the injustice contained in the ’95 Act as they rely on the Trustee and sponsoring company to transform their respective behaviour.
Leaders of the Pre-97 Alliance do not support the bill as an effective means of delivering Pre-97 pension justice. Promises of future change via guidance, which is not legally binding, and a reactivated Pension Commission offer no reassurance to pensioners in their twilight years.
At the invitation of Elaine Stewart MP, 14 pensioners representing over 50,000 pensioners of the Pre-97 Alliance held an informal “drop in” session at Parliament where they spoke “face to face” with 34 MPs and 1 member of the House of Lords, Baron Bryn Davies of Brixton, who is a respected expert in pensions.
Elaine Stewart said “I have heard from many of my constituents who find themselves in hardship due to the pre-1997 issue. I’m hosting this meeting to give MPs and members of the House of Lords the opportunity to hear from those impacted. Pensioners from across the UK will be in attendance to talk about the impact on them of the many years without increases”
Roy Davies, a pensioner from Wood Group said: “Put yourself in our pensioners shoes. In some cases, pre-1997 pensioners have lost up to £100,000 through lack of discretionary increases.”
Patricia Kennedy, Hewlett Packard Pensioners Association, added: “And at our age, we will never regain the financial resources we’ve lost and face a future of increasing insecurity for ourselves and our spouses.”