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19th September 2017
:: Press Office | Press Releases | Manufacturing firm moves to avoid pension collapse

Press Release
 
Manufacturing firm moves to avoid pension collapse
 
Trustees of the Dana Manufacturing Group Pension Scheme have sent members a written announcement this week confirming that the scheme is suffering a significant deficit and that the sponsoring employer cannot afford to meet the shortfall.
 
The announcement advises members that the Company and Trustees of the scheme have been in complex discussions over the last six months and have fully involved the Pension Protection Fund (PPF) and The Pensions Regulator during that period.
 
It goes on to say that "The Company has put forward a package of measures which involves the Scheme receiving a substantial sum of money including a share of proceeds of the sale of some businesses and also a payment from the Dana group of companies. Whilst the sum is significant, it is not enough to secure every member's benefits in full."
 
Furthermore, whilst the Scheme is being assessed by the PPF, the Trustees will be approaching insurance companies to see whether benefits secured by an insurer would be larger than those provided by the PPF.
 
Mike Jones, Director of the pension education website, MyCompanyPension.co.uk, says, "Whilst it is sad to see the potential demise of yet another defined benefits scheme, Dana as a company, and the Trustees must be applauded for their efforts to consider all alternative methods of securing members benefits. There are now more options open to Schemes as new companies have entered into the market to take over the risks and management of defined benefit pension schemes. To reduce the traumatic effect of receiving such worrying news, the Trustees have at least provided clear and concise communication at the earliest opportunity.”
 
The announcement warns members of the limitations of the compensation payments that can be made by the PPF, should it assume responsibility for the scheme.
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Contact
 
Mike Jones
MyCompanyPension.co.uk Ltd
PO Box 240
Telford
TF6 5YN
Tel: 0845 123 5670
Mobile: 07730 855 596
Fax: 0871 433 4662
 
Notes for editors:
  1. A copy of the Trustees Announcement to pensioner members can be found at MyCompanyPension.co.uk
  2. The Pension Protection Fund was established to pay compensation to members of eligible defined benefit pension schemes, when there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation. For further details see: http://www.pensionprotectionfund.org.uk
  3. The Pensions Regulator is the UK regulator of work-based pension schemes. It has a set of specific objectives:
    - to protect the benefits of members of work-based pension schemes;
    - to promote good administration of work-based pension schemes; and
    - to reduce the risk of situations arising that may lead to claims for compensation from the Pension Protection Fund.
    For further details see the http://www.thepensionregulator.gov.uk/
  4. The number of schemes in deficit has been slowly falling and was estimated to be around 5,000 in August 2006. See Page 43, for further details: http://www.thepensionregulator.gov.uk/pdf/PurpleBook.pdf
About MyCompanyPension.co.uk
 
MyCompanyPension.co.uk provides pension education, information and communication for scheme members, trustees, sponsoring employers and advisers. The website presents facts and information. MyCompanyPension.co.uk doesn't give advice; doesn’t sell pensions, life insurance products, investments or mortgages.
 
In the UK, there are approximately:
  • 20 million pension scheme members including over
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  • 29,000 FSA regulated firms and 165,000 FSA regulated advisers
  • 10,000 salary related schemes and 1,000's of sponsoring employers
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The company is a privately owned enterprise. Our team are all experienced and seasoned pension professionals. The website represents our core business - it is updated daily. Our income comes from membership fees, sponsorship, strategic partnerships and subscription services.
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Release date:
8th March 2007

Article details:
Main article 294 words

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