That this House notes that hundreds of thousands of former employees of 3M, American Express, Hewlett-Packard, Chevron, Pfizer and Wood Group, among others, face massively-reduced pensions from their pre-1997 contributions; understands that the Pension Act 1995 does not require for pension indexation for service before 1997; believes that, over this time, those affected have seen a huge decrease in value of their occupational pensions, because the lack of indexation meant pensions have not risen alongside rising costs, eroding income and leaving many now facing extreme financial hardship; further believes that allowing for discretionary increases to be a matter between companies and trustees has disadvantaged and discriminated against this group of pensioners; and calls on the Government to put pressure on the companies concerned to make good the indexation of former employees’ pensions for their pension contributions prior to 1997 and to consider retrospective legislation to encourage those companies who have not provided a significant discretionary uplift to former employee pensions, to help to mitigate value erosion from inflation to their company pensions.
