Strike fear on pensions
CLEVELAND Potash workers are today pondering a “final offer” before deciding on strike action over a pensions row.
Yesterday the Loftus mining firm and unions held crunch talks after angry workers rejected “unfavourable” changes to the company’s pension scheme. It is thought the new offer will allow employees to receive full pension benefits upon retiring at 60 - but only subject to the company’s approval.
Unions have agreed to hold a two-week ballot to decide whether to reject or accept the new proposals.
A trade union representative said: “From what I can gather, the retirement age is back down to 60 as long as the company agrees. If workers reject the offer, I understand that the company will withdraw all benefits.
“I’m not sure whether that means closing the final salary scheme and putting staff on a money purchase scheme instead.”
Cleveland Potash was not available to comment.
Former government pensions adviser Ros Altmann warned recently that thousands of investors in private pension funds have lost out by not shopping around for better deals.
She believes the government should be doing more to make people aware they do not have to draw the monthly income from the company which looked after their pension savings.
Stephen Gibbens, managing director of Trustlaw Financial Services in Teesdale, said individuals needed help to negotiate the pensions minefield.
He said: “Depending upon an individual’s personal circumstances, it may be more appropriate not to simply accept the annuity offered by the scheme, but instead exercise the Open Market Option, which allows an individual to transfer his or her pension fund to a different company in order to achieve a higher pension income.”
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