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."

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

By Daniel Thomas