The wait is agonising

By JUSTIN HARPER FOR MAILONLINE
Updated: 00:00 EST, 18 November 2005

AN INVESTIGATION into whether the Government misled workers by claiming failing company pensions were safe is unlikely to be finished this year, causing further misery for thousands of victims of scheme wind-ups.

Meanwhile, a Government compensation scheme has still not paid a penny to those affected, 18 months after it was unveiled.

Parliamentary Ombudsman Ann Abraham started her inquiry into the Government's role into the collapse of company pensions a year ago today.

Many people had hoped a judgment would be announced this month, to coincide with the anniversary.

Instead, the Ombudsman will announce exactly when a judgment will be made and the bad news is that it 'won't be imminent'. If the investigation goes against the Government, it could trigger compensation of more than £1bn.

More than 70,000 people have lost out as a result of their employers winding up pension funds. While the companies themselves have been put under the spotlight - many were profitable firms which simply ditched their pension liabilities - the Government has also been called into question.

Four Government departments stand accused of sending inaccurate information to employees and ignoring warnings from industry experts about the health of pension funds.

Many people trusted literature that stated their money was safe and protected by law. In reality, this was not the case, and those paying into schemes their whole working life have seen savings go up in smoke.

Many victims who have since retired are living off state pensions; others are working into retirement. For some, the Parliamentary Ombudsman's investigation could be their last hope of getting their money back.

A spokesman for the Parliamentary Ombudsman said an announcement would be made to quash rumours that the report will be published soon. She says: 'This is a very complex case and we want people to know its conclusion will not be imminent.'

This is bad news for victims such as Peter Smith. Having seen his £21,000 company pension all but disappear, he is now having to work past retirement age. He turned 65 two weeks ago.