Carpets International Pension Scheme

Mr. Iain Wright
To ask the Secretary of State for Work and Pensions whether members of the Carpets International pension scheme are eligible for assistance through the financial assistance scheme.

James Purnell
The Carpets International pension scheme is a successfully qualified pension scheme for the financial assistance scheme. All members of this scheme, who were within 15 years of their scheme’s normal retirement age, or above, on 14 May 2004, will be considered for eligibility for assistance through the financial assistance scheme.

The trustees have applied for initial payments and we are currently awaiting member data to enable us to start paying eligible members.

Mr. Iain Wright
To ask the Secretary of State for Work and Pensions if he will take steps to ensure that members of the Carpets International pension scheme receive their full pension entitlements.

James Purnell
The Carpets International pension scheme has successfully qualified for the Financial Assistance Scheme. The trustees have applied for initial payments and we are currently awaiting member data to enable us to start paying eligible members.

While the Financial Assistance Scheme does not provide eligible members with their full pension entitlement, it can provide significant assistance to members of qualifying pension schemes. On 25 May 2006, as part of the white paper, “Security in Retirement: towards a new pension system”, the Government announced that they will extend eligibility for the Financial Assistance Scheme to members of qualifying pension schemes who were within 15 years of their scheme’s normal retirement age on 14 May 2004.

Those within seven years of their scheme’s normal retirement age on 14 May 2004 will benefit from the Financial Assistance Scheme topping up their pensions to around 80 per cent. of their expected core pension. Those between seven and 15 years from their scheme’s normal retirement age who can more reasonably be expected to supplement their retirement income will be considered for a top-up to around 65 per cent. of their expected pension if they are between seven and 11 years from scheme pension age, and 50 per cent. between 12 and 15 years.