Press Release
13th August 2002
Last Stop for STG Pensions
MSP for Greenock & Inverclyde,
Duncan McNeil, has welcomed the announcement by Deputy Transport
Minister, Lewis Macdonald, of the details for the final stages of
the distribution of the Scottish Transport Group (STG) pension
fund surplus.
In addition to confirming that, following discussions with the Treasury, another £8 million has been added to the funds, the Minister said that letters detailing former STG employees’ pay-outs are now being sent out.
As soon as scheme members confirm the details in the letter are correct, their payment will be processed.
An advertising campaign will be also launched next week to ensure that all former employees know how to claim.
Commenting, Mr McNeil said:
"I am of course glad that the Executive has secured another £8 million for the fund – boosting the total pot to £126 million.
"The pay-outs, though, have been a long time coming and I share the frustration of the STG pensioners at this delay. I hope, though, that we are now, finally, at the last stop before the terminus.
"I also welcome the efforts which are being made to keep pension scheme members up to date in the final stages.
"If you are an STG pension scheme member, you should shortly receive a letter setting out details of your individual payment, together with a booklet with full information on how the calculations are made. You will be asked to return a reply slip confirming that the information in the letter is correct and, as payments will be made by bank transfer, advising the Executive of your bank details.
"Your payment will be actioned as soon as you return this reply slip."
Scottish Ministers successfully negotiated to keep £118 million from the Scottish Transport Group's (STG) surplus funds, and further discussion with HM Treasury has resulted in £8 million being added to this sum, bringing the total amount to be distributed to £126 million.
These funds will be paid out as ex-gratia payments to all former STG members and are over and above current pension entitlements. They will be calculated in proportion to existing benefits from the pension scheme.
The STG was formally dissolved earlier this year and funds were moved to the Scottish Executive to start the payment process as quickly as possible. The Executive negotiated early access to the pension records and began evaluating the pensioners' details immediately.
Widows and widowers of members who died before the initial agreement was reached with HM Treasury will receive a payment to the value of 50% of that which would have been received by their spouse or partner. This represents their full entitlement under the rules of the pension scheme on which the ex-gratia payments are based.
Surplus funds came to the Executive when the STG was formally dissolved and ceased to exist on 7th June 2002. Full payments will be made to the estate of any former member who has died since that date and the payments will equate to what they would have received had they been alive.
To ensure fairness, the Executive is also preparing to make full payments to the estate of any former members who died after the initial agreement was reached with HM Treasury on 18th December 2000. Again, such payments will fully reflect what would have been received by the member had they still been alive.
Members of the scheme who believe that the
STG Pension Schemes might not hold details of their current
address are invited to write to the SPPA at: Scottish Public
Pensions Agency, STG, PO Box 13325, Hawick, TD9 9YQ, giving their
full name, pension scheme, National Insurance number, date of
birth and current address.
ENDS
Back to Current Press Releases
[ HOME ] [ News ] [ Articles ] [ Calendar ] [ Contacts ] [ Links ] [ E-Mail ]
[ Copyright ] [ UK Online ] [ Scottish Parliament ]