PENSIONERS faced with ruin after Robert Maxwell plundered their
pension funds learned last night that a #276m deal had been agreed to
restore their financial security.
More than three years after the press tycoon's body was found floating
in the Atlantic, the trustees of his company pension funds announced
that a group of major City institutions had agreed to settle claims.
The deal ended years of ''mental turmoil'' for 32,000 people who had
worked for Maxwell companies and had learned after his death that he had
raided the pension coffers to the tune of an estimated #440m.
Mr Ken Trench, chairman of the Maxwell Pensioners' Action Group,
representing 20,000 Maxwell pensioners, said: ''Obviously this is
tremendous news. These people can get on with living their lives.''
With #100m already recovered, plus payments from the Government to
cover the Guaranteed Minimum Pension, the rescue deal was welcomed by
trustees as making up virtually all the shortfall.
All 5000 members of the Maxwell Communication Pension Plan -- staff
from more than 150 Maxwell-owned companies -- ''can now look forward to
receiving their pensions, thanks to the settlement'', said a spokesman
for the Law Debenture Trust Corporation, trustees for the plan.
The settlement was welcomed in statements by City institutions whose
dealings with Robert Maxwell had led to legal action by trustees.
It was also welcomed by the Mirror Group, which said the deal --
subject to detailed contracts and court approval -- would allow it to
release more than #100m of the provision it had made to cover its
pension scheme deficit.
Social Security Secretary Peter Lilley said: ''I am pleased that the
exceptional measures taken by the Government to help the pensioners have
ensured that pensions stayed in payment while discussions took place.''
The Maxwell Pensioners' Trust -- set up by the Government in June 1992
-- was understood to have enough money to continue to support pension
payments while discussion of detailed terms and conditions took place,
he said.
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