NFC pensions queries
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by Karen Miles • The pensions ombudsman is to investigate a second complaint against the management of the NFC pension fund.
The ombudsman's agreement to look into the case of Emyr Lloyd-Williams, who was a London branch manager for NFC's former parcels company, United Carriers, follows his earlier decision to investigate the administration of the NFC fund for manager Harold Clark.
Both Lloyd-Williams and Clark are arguing that NFC failed to act in the best interests of its scheme's pensioners when it amalgamated its three pension funds in 1992. NFC declines to comment.
Lloyd-Williams further contends that since 1992 NFC has managed to reduce its costs by giving enhanced pension benefits to staff made voluntarily redundant in exchange for reduced redundancy payments. He calls on the ombudsman to "determine that the payment of enhanced benefit from (the pension fund) surplus was wrong and that NFC should fund the enhanced benefits from their own resources".
Lloyd-Williams, who is 69 and has been retired 12 years, hopes his case will be studied separately from Clark's, so giv• ing the ombudsman a "second bite of the cherry".
If the ombudsman finds against NFC he is empowered to force the company to introduce improved pension benefits or to bring in a contributions holiday for employees.
Around 17,000 staff continue to pay into the £960m fund which supports some 25,000 pensioners. Because of its 12260m surplus NFC has not contributed for eight years.
Jimmy Knapp, general-secretary of the RMT union, has accused NFC of "corporate greed" by putting its own interests ahead of the fund.
NFC's handling of the fund has caused disquiet among some employee-shareholders who argue that their pension pay-outs are far too low.