Pension fund closure threatens disaster

Jul 23 2004 by Brian Amble Print This Article

Almost 20,000 current and former workers at car parts maker Federal Mogul in the UK could lose nearly half their retirement income as their pension fund faces winding up with a shortfall of close to £875m, the Financial Times reports today.

The FT says that if the winding up goes ahead it would be the biggest closure of an underfunded pension scheme to date and threatens to swamp the £400m the government has said it will pay out over the next 20 years to more than 60,000 UK workers who have lost all or part of their pension.

Financial Times | Thousands face pensions disaster