[A-List] UK pensions crisis

["Michael Keaney" <michael.keaney@xxxxxx>]

Pension complaints leap 50%

Rupert Jones
Friday June 27, 2003
The Guardian

Complaints about pensions have soared more than 50% over the past year,
reflecting growing public anger and failing confidence in the system, an
industry watchdog says today.

Opas, the pensions advisory service, said the year to March 31 had been its
busiest - more than 61,000 people using its service to seek advice and
reassurance, and report problems.

A total of 3,939 complaints and disputes were brought to its attention, up
from 2,572 the previous year, "confirming the sense of grievance that many
pension savers feel".

Opas, an independent body providing free help and advice to the public on
all pension issues, said the closure of final salary company schemes,
falling stock market returns, pension scheme wind-ups and Equitable Life
were among issues which dominated its postbag; others included whether to
contract in or out of the state second pension.

Malcolm McLean, Opas chief executive, said the government needed to restore
confidence in the system. Opas has come across many people considering
transferring out of occupational schemes into personal plans because of
fears that company schemes could wind up.

Opas said the issue of under-funding - not enough money in a scheme to meet
its commitments to members - "is sapping public confidence in final salary
schemes". Enquiries about the state pension rose by 40%, and Opas said the
complexity of the state system was a problem, warning that the introduction
in October of the pension credit would add to complexity.

· The country's biggest private sector trade union is taking legal action
against the government on behalf of workers whose pensions were hit when
their employers went into liquidation. Amicus plans to take a case to the
European court of justice on behalf of its members who used to work at
Allied Steel & Wire and United Engineering Forgings.