European Court Ruling Positive For Pensions Compensation

12.00.00am UTC (GMT +0000) Mon 17th Jul 2006

Commenting on the ruling from the Advocate General of the European Court of Justice, in the case brought by the Community and AMICUS unions against the Government, that British law controlling pensions does not fully comply with EU law, Paul Holmes, Liberal Democrat MP for Chesterfield said:

"The ruling is some good news for local workers from companies like Dema Glass, Coalite and Chesterfield Cylinders who worked hard to save for security in their retirement but lost their pensions and now face poverty at retirement.

"This ruling is not sufficient to force the Government to pay compensation but this is not the final decision. We will have to wait until the Court delivers its full verdict in the autumn to know the final outcome.

The Government has tried to restrict compensation for the loss of a pension to people who lodged an appeal by 13th July. This is disgraceful. The ruling from the European Court of Justice did not address the time limit for compensation and we will have to wait until the autumn to find out whether the time restrictions will apply. I have tabled an Early Day Motion condemning the Government's actions and calling for the Government to accept the Pensions Ombudsman's ruling that it was guilty of maladministration and to remove the time limit on compensation claims.

The Government has provided a shamefully insufficient Pensions Protection Fund and must now fulfil their responsibility to compensate the victims of this gross pensions theft."