Commons Committee finds AEA Technology pensioners should be entitled to compensation

The House of Commons Public Accounts Committee has today published the results of an investigation into the scandal of workers at AEA Technology who lost pension entitlement when the company was privatised.

After a long campaign by members of the scheme and by Prospect which represented a number of members there, the committee agreed to look at the situation.  It has concluded that the government did not provide sufficient information for them to make an informed choice when transferring their pensions and therefore they should be entitled to have their compensation claims independently reviewed.

Garry Graham, Deputy General Secretary of Prospect, said:

“This report has found to be true what Prospect has long been arguing: that workers who transferred their pensions lost money because their decision was based on incomplete information from government.

“Scheme members have been let down again and again over the past decade, with government departments and ombudsmen all saying it’s not their problem.

“The recommendation for government to review the compensation payable from the PPF is particularly welcome. The lack of inflation protection for pension accrued before April 1997 is devastating for members, and given the strength of the PPF’s funding position, it is right to review whether improving compensation is affordable.

“I would also like to pay tribute to the AEAT Pensions Campaign, which includes many retired Prospect members. Their tireless work has been instrumental in pushing for a fair resolution for these workers.”

“The government must take up the Committee’s recommendations and ensure that members’ complaints can be independently reviewed so that justice can be done.”