How firms ‘avoid’ pension costs & Tory MPs Pocket the money
Eight months ago the Worcester-based company, Faithful
Workwear, which
was owned by former Tory cabinet minister Stephen Dorrell MP and made
industrial
clothing, went into so-called "pre-pack administration." The assets
were sold
to a new business trading under a new name but without the pension
liability
of the old business.
Now instead of the firm’s pensioners living a well earned
retirement,
after contributing for years to a pension fund, they are set to lose
30 to 40% of
their pension.
