News

GMB blames private equity for insolvencies



A new report from the GMB trade union has held the private equity sector responsible for at least £2bn in unfunded pension fund liabilities. 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.



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. The GMB is not going to stop – we are going to overturn every single stone until we know everything that is going on in every pension fund that has been taken over.” He added: "What this report doesn’t tell you, is how many people have been thrown out of pension schemes without access to new ones, like Birds Eye, the AA and many others.”"



Full story (Global Pensions, Jun. 4): http://globalpensions.com/?id=me/17/news/27/45282/35/



Press release (GMB Press Release, Jun. 4):

http://www.gmb.org.uk/Templates/Internal.asp?NodeID=95530



Study (GMB Report: Private Equity's Broken Pension Promises, Jun. 4): http://www.gmb.org.uk/Shared_asp_files/GFSR.asp?NodeID=95553 (PDF)