More than 6,000 workers at failed car marker MG Rover are to have their pension secured by the Pension Protection Fund (PPF).
The company’s scheme, which has more than 6,000 members, is the largest so far to transfer to the PPF.
The Pension Protection Fund opened its doors to business in April 2005 having been set up as part of the Pensions Act 2004. It protects members of workplace schemes in the case of employers going bust, and when there are insufficient assets to cover pension liabilities.
A total of nine schemes have now formally transferred to the fund.
Pension Protection Fund chief executive, Partha Dasgupta, said: “To have transferred a scheme as large as MG Rover within two years, and to have transferred a further eight schemes during the same period, is a major achievement for the PPF, reflecting the success of the partnership approach it adopts with scheme trustees.
The PPF estimates that by the end of 2007-2008, a further 65 schemes may formally transfer to the PPF.
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