MPs calling for £1.2bn to be transferred to miners’ pensions
Thousands of former miners in the North East could see their pensions rise – if the Government tackles an "historic injustice" in the pension scheme.
MPsareurgingtheGovernment to transfer £1.2bn to the pensionfund,whichcouldlead to a £14 increase to the average weekly pension of £84.
The Business, Energy and IndustrialStrategyCommittee said that, since privatisation of the scheme in 1994, the Government has received 50% of surpluses in its value in return for providing a guarantee that thevalueofpensionswouldnot decrease.
At the time it was expected that the Government would receive around £4bn from the arrangement in today's money, but that has increased to £4.4bn, and it is also due to receiveatleastanother£1.9bnon top of 50% off any future surpluses, said the report.
The committee’s report says: "The Government's entitlement to 50% of surpluses is not proportionate to the degree of financial risk it actually faces."
Committee chairman Darren Jones said: "The Government has benefited from billions of pounds of surpluses since 1994 without having to contribute a pound of taxpayers' money to miners' pensions.
"Miningcommunitieshave suffered from pit closures for generations and, while the Government's guarantee to
the fund has provided vital security to Mineworkers' Pension Scheme members, it's
clearthatithasprofitedtoafar greater extent than originally envisaged. "That now needs to change. "The Government should act on our recommendations by agreeing to hand back more offuturesurplusestopensioners and return £1.2bn to the investment reserve."
NUM general secretary, ChrisKitchen,said:“TheNUM welcomestheBEISReportand supports the implementation of the recommendations as soon as possible.
“It is clear from the findings that the current arrangements are not fair. The Government has received more than was ever expected at the inception of the guarantee,andthereforeshouldforgo anyclaimtotheInvestmentReserve Fund.
WeurgetheGovernmentto accept the recommendations. Mineworkerswhopaidmoney into the scheme should be the ones that benefit, not Governments that have never put a penny in.”