Pension boost for former mineworkers welcomed by Rotherham MP
HUNDREDS of former mineworkers in Rotherham will get a pension boost averaging £5,000 a year following a Government decision – which has been welcomed by MP Sarah Champion.
The Government has announced it will return the Investment Reserve of the British Coal Staff Superannuation Scheme (BCSSS) to former mineworkers.
Following the privatisation of the coal industry in the 1990s, the Government agreed to act as the guarantor of both the BCSSS and its sister scheme, the Mineworkers’ Pension Scheme.
This arrangement has seen billions from the scheme’s surpluses pour into Government coffers, without ever contributing to the fund.
The announcement follows similar measures in respect of the MPS implemented last year.
Following the announcement by the Chancellor in the Budget, Energy Secretary Ed Miliband confirmed that the move will mean a 41 per cent boost to the annual pensions of 40,000 former mineworkers across the UK – an average increase of £100 per week for each member.
The trustees of the scheme are expected to make the first uplifted payments to members before the end of the year, with payments backdated to coincide with when the changes were implemented to the Mineworkers’ Pension Scheme.
Ms Champion said: “For too long former miners in Rotherham have been denied the pension settlement they have earned.
“Today, Labour ends this injustice and delivers what is rightfully owed back to mining families.
“I have been campaigning for years to give back the funds that are rightfully theirs. I am delighted that the Labour Government has listened and that, from now on, mineworkers pension funds will only be used to support former mineworkers in their retirement.”
Energy Secretary Ed Miliband said: “We owe the mining communities who powered this country a debt of gratitude.
“I am delighted that we are rightfully transferring the BCSSS investment reserve back to former mineworkers.”
Chris Kitchen, General Secretary of the NUM said: “The NUM welcomes the BCSSS announcement in the Budget and the Labour Government’s recognition that there were two pension schemes in the mining industry that suffered historic injustice which they have sought to correct.
“The additional pensions this will provide will benefit not just the pensioners, but our former mining communities devastated by the closure of our industry.
“A commitment made, a commitment delivered.”