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Attention: personal finance, economics, industrial, political correspondents

Workers should be compensated for lost pensions

Welcoming the Pensions Bill published today (Thursday), Brendan Barber, TUC General Secretary, said:

'Radical action, including compulsion, is needed to solve Britain’s growing pensions crisis, but that will wait until the Pensions Commission has completed its work. In the meantime this Bill is extremely welcome. Many of its measures have been at the top of the union pensions campaign agenda for years.

'In particular we welcome the Pension Protection Fund, which will protect employee pensions when a company goes bust. Collective insurance is the sensible way to protect pensions.

'However those employees who have already lost out should not be forgotten. Many employees of companies such as ASW were contractually required to join their occupational pension and were made a specific pensions promise by their scheme that has now been broken. They should be compensated.

'The TUC welcomes the requirement that member representatives make up at least a third of a pension trustees board, although we are concerned about the transparency of the appointments procedure.'

Notes to Editors:

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Contacts:

Media enquiries: Ben Hurley 020 7467 1248 or 07626 317903 (pager) or email bhurley@tuc.org.uk

Press release (300 words) issued 12 Feb 2004