UK pensions in jeopardy as parent company has assets frozen

Up
to 40,000 current and former workers of car parts maker Turner & Newall
(T&N) may lose part of their contributions to their company pension scheme,
it emerged today.

The
employees’ pensions pot has been frozen by the administrators of its parent
company, US-based Federal Mogul.

Many
are predicting that the scheme, which has a shortfall close to £875m, may be
wound-up completely, in what would be the biggest closure of its kind.

Tony
Murphy, Amicus national secretary, said: “This is yet another example of how
vulnerable UK workers are. Their pensions are not protected and their interests
are the last priority in the event of administration."

Federal
Mogul sought Chapter 11 bankruptcy protection after T&N was brought down by
asbestos claims.

By Daniel Thomas

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