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| Lords try to raise pension payout | Lords try to raise pension payout |
| (10 minutes later) | |
| Tony Blair and David Cameron have clashed on plans to increase payouts to those whose company pensions went bust. | |
| The House of Lords will vote on an amendment to the Pensions Bill that could lead to higher payouts from the Financial Assistance Scheme (FAS). | The House of Lords will vote on an amendment to the Pensions Bill that could lead to higher payouts from the Financial Assistance Scheme (FAS). |
| The FAS was set up to compensate people who lost their pensions when schemes collapsed between 1997 and 2005. | |
| The amendment seeks to bring the level of FAS payouts up to that of the more recent Pension Protection Fund (PPF). | The amendment seeks to bring the level of FAS payouts up to that of the more recent Pension Protection Fund (PPF). |
| Liberal Democrat peer Lord Oakeshott described the FAS as "miserable." | Liberal Democrat peer Lord Oakeshott described the FAS as "miserable." |
| "It has only paid out £4m so far, although 125,000 people have been robbed of their pensions," he said. | "It has only paid out £4m so far, although 125,000 people have been robbed of their pensions," he said. |
| In April, a similar amendment was defeated in the House of Commons by 22 votes. | In April, a similar amendment was defeated in the House of Commons by 22 votes. |
| Now, Lib Dem and Conservative peers are making another attempt to introduce the plan at the committee stage of the Bill. | Now, Lib Dem and Conservative peers are making another attempt to introduce the plan at the committee stage of the Bill. |
| Improved protection | Improved protection |
| In this year's Budget in March, the Government extended the scope of the FAS so that all 125,000 affected pension scheme members would be eligible to receive 80% of their "core" benefits, and increased its funding from £2bn to £8bn. | In this year's Budget in March, the Government extended the scope of the FAS so that all 125,000 affected pension scheme members would be eligible to receive 80% of their "core" benefits, and increased its funding from £2bn to £8bn. |
| However the pension protection fund - which provides compensation for people whose pension schemes went bust since 2005 - pays out at a higher 90% level. | However the pension protection fund - which provides compensation for people whose pension schemes went bust since 2005 - pays out at a higher 90% level. |
| Ros Altmann, a spokeswoman for the Pensions Action Group, said it was the responsibility of the Government to improve the FAS further. | Ros Altmann, a spokeswoman for the Pensions Action Group, said it was the responsibility of the Government to improve the FAS further. |
| "The government said it had put in place laws which would make employer pension schemes completely safe and ensure that the employer had put enough money in to fund the pensions," she said. | "The government said it had put in place laws which would make employer pension schemes completely safe and ensure that the employer had put enough money in to fund the pensions," she said. |
| "The Government knew those laws wouldn't work but it kept pretending to the members of the schemes that the money was completely safe." | "The Government knew those laws wouldn't work but it kept pretending to the members of the schemes that the money was completely safe." |