Rover trustee aims for Pension Protection Fund
UK - The new independent trustee for two underfunded pension schemes at collapsed car firm MG Rover has confirmed that it wants them to enter the Pension Protection Fund.
IPE reported last week that the PPF had confirmed that MG Rover, which went into administration earlier this month, was one of three companies that had made initial applications to the PPF.
Now Jardine Lloyd Thompson's Independent Trustee Services has confirmed the PPF is its objective for the MG Rover Pension Schemes.
And it said that those members who are already in receipt of a pension would continue to receive benefits at the current level "for the time being".
It said: "If ITS is successful in its objective of Pension Protection Fund entry for the Schemes, then pensions in payment will then be at the level of Pension Protection Fund benefits." The firm has set up a web site for each scheme.
"It is vitally important that all scheme members understand the levels of Pension Protection Fund compensation which may be available if the schemes ultimately satisfy the entry criteria for the Pension Protection Fund," said ITS managing director Chris Martin.
And he said that, based on initial actuarial advice, both plans are underfunded and the level of benefits available from the Pension Protection Fund at normal scheme pension age (65) are likely to be greater, for the vast majority of members, than the benefits available if the Schemes had to wind up by purchasing annuity policies with an insurance company.
The MG Rover Group Pension Scheme has approximately 7,000 members and the MG Rover Group Senior Pension Scheme has around 100 members.