A deal struck with a major financial group looks set to end years of uncertainty for Ferodo pensioners in the T&N pension scheme.
Trustees of the T&N Retirement Benefit Scheme (1989) have announced that pensions will be provided through Legal & General Assurance Society Ltd.
Independent trustee Tim Culverhouse said: “While it is a source of regret that the Scheme’s members will receive reduced pensions, most will receive the majority of their original entitlement. This is a far better situation than the one we once faced, where many of the Scheme members stood to lose a far higher percentage of their pensions.
“By working closely with The Pension Regulator, Pension Protection Fund and the Scheme’s advisers, we were able to secure more money for members following the sponsor’s insolvency, and ultimately provide pensions from L&G.”
Since July 2006 the scheme has been in a Pension Protection Fund assessment period but a valuation of assets exceeded the threshold at which the fund would automatically pay members’ benefits.
Pensions will continue to be paid as normal while the transition to L&G takes place.
“There is the prospect of a small one-off uplift to members’ annual pensions once the arrangements are finalised.
High Peak MP Andrew Bingham, said: “When all this kicked off it was looking as if they would get very little. The PPF acted as a safety net. It is not perfect but is better than what was on the cards originally.”
He added: “It has been a long long road and a lot of worry for a lot of people.”