Help for pension wind-up victims

Pension wind ups have caused anguish for some workers

Details of a scheme to bail out workers whose pension schemes have gone bust have been published by the government.

It said 380 pensions are "potentially eligible" to qualify for its Financial Assistance Scheme (FAS).

Members between 57 and 73 years old should get 80% of their pensions, as a result of a top up from the FAS.

The FAS applies to schemes that started winding up after January 1997. However, it is not yet clear what help younger members will receive.

A spokesman for the Department for Work and Pensions (DWP) admitted there was nothing in its latest announcement for these workers, but said it was "still an area the department was looking at".

The rules of the proposed scheme will be reviewed every three years, he added.

Hardest hit

The FAS covers pension funds that failed between May 2004 and April 2005, after which the Pension Protection Fund takes over.

The government has estimated that about 65,000 people may need help after their pension scheme has become insolvent.

Workers who were a few years from retirement when their company went bust have been hit hardest Malcolm Wicks, Pensions Minister

Of the 65,000 members facing losses, about 35,000 workers are facing losses of 50% or more.

In its new announcement, the government said eligible workers who were within three years of their scheme's pension age on 14 May 2004, when the FAS was announced, will receive a top up of up to 80% of their scheme pension.

Pensions Minister Malcolm Wicks said the government wanted to reassure workers close to retirement age.

"Workers who were a few years from retirement when their company went bust have been hit hardest - losing both their jobs and their pensions with little chance to start again," Mr Wicks said.

The DWP spokesman could not confirm how much its latest proposal would cost.

The government has previously said it has put aside £400m to fund the FAS, although some experts have said this is insufficient.