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05 June 2007

GMB Congress Report shows links between private equity industry and insolvent pension funds





The latest report of the GMB trade union shows links between private equity industry and insolvent pension funds. The GMB unleashed the attack after three months of research, citing 96 pension funds now in the care of the Financial Assistance Scheme (FAS), and the Pension Protection Fund (PPF) as a result of private equity activity.

Cited in a FT article, GMB national officer, Paul Maloney, explained: “Private equity firms tell us their investment is good for pension funds, but now they are going to have to stop telling lies to the public, the financial system and the treasury.”

Reacting to the news that the Boots shareholders are likely to agree to sell the company to private equity companies without agreement on forward funding of the pension scheme, he said: 'The Pensions Regulator must now get involved in this unsatisfactory situation and rule on the pensions funding strategy needed to protect members of the Boots pension fund and insist that this strategy is followed.

“The Secretary of State for Work and Pensions must also intervene to ensure that all legal powers are used to protect members of the fund from the piranhas of private equity.

Press release
Report


© GMB


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