Source · Select Committees · Business and Trade Committee
Recommendation 4
4
Paragraph: 22
To date, the Government has received £4.4bn from the Mineworkers’ Pension Scheme.
Conclusion
To date, the Government has received £4.4bn from the Mineworkers’ Pension Scheme. This is already more than the 1994 expectations of what the Government would receive. The Government is also due to receive at least another £1.9bn, on top of 50% off any future surpluses.
Paragraph Reference:
22
Government Response
Rejected
HM Government
Rejected
6. The Government does not accept that the Trustees had no choice about the Government proposal in 1994. We note that if the Trustees did not think the 50:50 offer was a reasonable one, they could have declined the offer of the guarantee at that time. BEIS Ministers would still be happy to discuss that option with them. Without the Government guarantee, Scheme members would have access to all surpluses. However, there are numerous examples of pension schemes that have been unable to meet their basic obligations, let alone increase pensions to the extent the MPS has under the current arrangements. The Government continues to believe that the arrangement agreed in 1994 was fair and beneficial to both Scheme members and taxpayers. Scheme members have rightly shared in the benefits but the Government has taken on all the risk.