AYRSHIRE PENSIONERS BENEFIT FROM NEW ERA IN PENSION PROTECTION

• First direct payments from the PPF being made to pensioners on 1st December 2006
• Former  Chilton Scotland Staff among first to benefit
• Significant step forward in protection of final salary schemes in UK
 

A key milestone in the financial security of thousands of pensioners was reached today as the Pension Protection Fund (PPF) made its first direct payments to members of occupational pension schemes.

Over 90,000 pension scheme members already benefit from protection, but until today pensioners were paid by the relevant administrator or payroll provider for their scheme under the control of the trustees.  Today the Pension Protection Fund has taken over responsibility for making those and future payments to scheme members of three schemes.

Among the first to receive payments are former employees of Chilton Scotland Ltd. The company, which closed last year and was based in Girvan, specialised in the production of weft-knit fabric and counted Marks and Spencer among its clients. 

A total of 220 members of the company’s pension scheme, The Chilton Scotland Pension Scheme, are protected by the Pension Protection Fund, with 31 pensioners now receiving compensation.

Pension Protection Fund Chairman, Lawrence Churchill said:

“The first compensation payments being made directly from the PPF complete the final phase in the PPF’s development. We were set up to pay compensation and now we are doing so. From here on in there will be a continuous flow of schemes completing their assessment period and their pensioners will feel reassured that their income every month comes from a known, trusted and stable source.”

Chief Executive Partha Dasgupta said:

“Despite the complexities of pensions, we never forget the people we exist to protect, the members of final salary schemes right across the UK.  Today’s landmark event could not have been achieved without the hard work of Dalriada, the scheme’s trustees.  Working together we have demonstrated that we can pay the right compensation to the right people at the right time, and provide real security in retirement for members of final salary pension schemes. ”

Pensions Minister, James Purnell said:

“The PPF was introduced by the Government to safeguard the savings of millions of people contributing to defined benefit occupational pension schemes - and these payments show it is doing just that. The PPF will ensure that workers who save into a final salary scheme will have a safety net against financial difficulties their company may face in the future.”