‘Thanks Echo for All of Your Great Support’

By David James

Thank you! That was the simple message from triumphant South Wales pensions victims for everyone who has supported their battle for justice. For the first time in six years, former Cardiff Allied Steel and Wire workers can enjoy Christmas without fearing for their financial futures. All 1,000 former steelworkers will benefit from Work and Pensions Secretary Peter Hain’s pledge that their compensation will be improved to 90 per cent of their lost pensions. John Benson, 61, of Dinas Powys, admitted yesterday that he was exhausted after years of campaigning at party conferences, court hearings and parliamentary hearings.

The former ASW worker, who had saved pounds 43,500 in his pension, said the terms of the offer, which is index-linked and allows lump sum payments, was a good enough compromise on his long- standing demand for 100 per cent compensation. Speaking at the House of Commons where he had travelled for the announcement, Mr Benson said: “I haven’t had a lot of respect for Peter Hain but he must take some of the credit for this.

“I would also like to say thank-you to Plaid MP Adam Price, Julie Morgan MP, Jenny Willott MP and in the Assembly Nick Bourne, Jenny Randerson and Owen John Thomas.

“I also want to thank the Echo. The Echo has been absolutely brilliant. If it hadn’t been for the support of the Echo over all these years I don’t know if we would have got such a good deal.”

He added: “I’m a very happy man now. I feel sorry that we couldn’t get 100 per cent but I hope everyone will feel that we have done our best.

“It’s finished and all my colleagues and ASW workers can have a happy Christmas this year.”

Former ASW workers said the terms of the new deal – which is backdated to 2004 – were almost as good as having their old pension back.

Brian Silver, 55, who had worked at the plant for 32 years, had been forecast to receive less than a fifth of his pension, leaving him with pounds 2,400 instead of pounds 12,000 a year.

Former pounds 25,0000-a-year shift leader Joe Monks, 49, had been told to expect just pounds 2,000 of his pounds 12,000-a-year pension.

And Peter Jackson, 62, who had paid into the ASW scheme for 29 years after joining the firm on leaving school, was also forecast to receive just a fraction of his expected pounds 17,000-a-year pension.

Now all three expect to receive almost everything they were originally entitled to. Sid Jenkins, 68, of Rhiwbina, Cardiff, who paid into the ASW pension scheme for 41 years before it collapsed, said: “It’s almost as good as having my own pension.

“We’ve been through a lot over the last few years and this is the end of it now.”

In their fight for pensions justice, the campaigners have been supported by politicians of all hues in Wales and Westminster all of whom welcomed yesterday’s announcement.

The campaign was also backed by Dr Ros Altmann, a former Downing Street pensions adviser. She said yesterday’s announcement was “unbelievable”.

Ombudsman Ann Abraham, whose damning report into the Government’s handling of the pensions scandal provided the campaigners with ammunition, also said the offer satisfied her. She said: “I warmly welcome this announcement, which constitutes full compliance with my key recommendation and which also remedies the deficiencies in the Financial Assistance Scheme identified in my report.”: CAMPAIGN DATES BACK TO 2002:2002: Allied Steel & Wire workers were dealt three blows when their employer became bankrupt: They lost their jobs, were told they would not get redundancy and that there was only enough cash in the pension funds to pay out 15 per cent of their savings.

2003 June 12: Under pressure from ex-ASW workers, the Government set up a Pensions Protection Fund to protect future victims. But it did not help those who had already lost out.

November 3: The ISTC and Amicus unions served the Government with a High Court writ, claiming it was liable to pay workers full compensation.

November 5: Ex-ASW worker John Benson travelled to the European Parliament in Brussels with Plaid Cymru politicians and the Echo to appeal for its help.2004, May 14: Prime Minister Tony Blair announced a pounds 400m Financial Assistance Scheme to help pensions victims. It would only help people who were three years or less away from retirement.November 25: Parliamentary Ombudsman Ann Abraham launched her own investigation.2005, March 15: Ms Abrahams report accused the Government of maladministration in its handling of the pensions crisis. The Government rejected her claims.May 26: The FAS coffers are increased to pounds 2.3bn, meaning those closest to retirement may eventually receive most of their pensions, but thousands more would still get nothing.November 14: Figures obtained by the Echo under the Freedom of Information Act show the FAS has only compensated 22 ex-ASW workers to the tune of less than pounds 4,000 each.2007, January 25: The European Court of Justice criticised the UKs pension safeguards, but ruled the Government was not obliged to compensate workers.February 21: Four pensioners won a High Court case against the Government over its failure to accept the Ombudsmans report.March 22: Chancellor Gordon Brown announced the FAS would be increased to pounds 8bn and all workers would eventually receive 80 per cent of their pensions.December 17: It is announced that the FAS will be improved to match the terms of the PPF and pay out 90 per cent of pension victims lost savings.Ex-ASW worker John Benson travelled to the European Parliament in Brussels with Plaid Cymru politicians and the Echo to appeal for its help.

2004, May 14: Prime Minister Tony Blair announced a pounds 400m Financial Assistance Scheme to help pensions victims. It would only help people who were three years or less away from retirement.

November 25: Parliamentary Ombudsman Ann Abraham launched her own investigation.

2005, March 15: Ms Abrahams report accused the Government of maladministration in its handling of the pensions crisis. The Government rejected her claims.

May 26: The FAS coffers are increased to pounds 2.3bn, meaning those closest to retirement may eventually receive most of their pensions, but thousands more would still get nothing.November 14: Figures obtained by the Echo under the Freedom of Information Act show the FAS has only compensated 22 ex-ASW workers to the tune of less than pounds 4,000 each.2007, January 25: The European Court of Justice criticised the UKs pension safeguards, but ruled the Government was not obliged to compensate workers.February 21: Four pensioners won a High Court case against the Government over its failure to accept the Ombudsmans report.March 22: Chancellor Gordon Brown announced the FAS would be increased to pounds 8bn and all workers would eventually receive 80 per cent of their pensions.December 17: It is announced that the FAS will be improved to match the terms of the PPF and pay out 90 per cent of pension victims lost savings.The FAS coffers are increased to pounds 2.3bn, meaning those closest to retirement may eventually receive most of their pensions, but thousands more would still get nothing.

November 14: Figures obtained by the Echo under the Freedom of Information Act show the FAS has only compensated 22 ex-ASW workers to the tune of less than pounds 4,000 each. 2007, January 25: The European Court of Justice criticised the UKs pension safeguards, but ruled the Government was not obliged to compensate workers. February 21: Four pensioners won a High Court case against the Government over its failure to accept the Ombudsmans report. March 22: Chancellor Gordon Brown announced the FAS would be increased to pounds 8bn and all workers would eventually receive 80 per cent of their pensions. December 17: It is announced that the FAS will be improved to match the terms of the PPF and pay out 90 per cent of pension victims lost savings.: WHAT THE OFFER MEANS:90 per cent of pensions victims savings will be paid out up to a maximum of pounds 26,000.

It will be funded by pooling all the funds from collapsed pension schemes (pounds 1.7bn) and adding Government cash to subside the shortfall.

The resulting payouts will be index-linked up to a maximum of 2.5 per cent a year.

Lump sum payments will be possible as will early retirement if it was allowed in the pensions victims original deal.

People who are unable to work due to ill health will also be able to apply for early access to payments from age 60.

Pensions Secretary Peter Hain said: We believe this represents a just and final settlement bringing the total commitment to pounds 12.5bn in cash terms or pounds 2.9bn in present value.

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