Central Ayrshire MP, Alan Gemmell, has lent his backing to a group of former employees of UK Digital Equipment Corporation, who are fighting for pension ‘justice’.
The firm employed around 1500 people across the Ayrshire region at their plant at Mosshill Industrial Estate, Ayr, between 1977 and 2002 – until it was wound down by Hewlett Packard.
However, there’s been a long standing dispute between the former employees and Hewlett Packard Enterprise over discretionary pension contributions.
The former Digital employees claim they possess ‘massively-reduced’ pensions from their pre-1997 contributions, because current legislation only index-links contributions from the year 1997.
And they want the tech giants to ‘make good’ on their contributions to the scheme.
In 1998, Digital Equipment merged with Compaq, and in 2001 that organisation, in turn, merged with Hewlett Packard.
In 2017 Hewlett Packard split, and Hewlett Packard Enterprise took over responsibility for the Digital pension scheme.
Now new Labour MP, Mr Gemmell has taken up the baton and grilled the new Pensions Minister Emma Reynolds on the issue.
Mr Gemmell said in Parliament: “David Carson and Patricia Kennedy, constituents of mine in Central Ayrshire, face massively reduced pensions payments from their pre-1997 contributions to their Hewlett Packard pension, because current legislation index-links contributions from 1997 only.”
A review over UK pensions was launched earlier this year. It is aimed at boosting investment, increasing saver returns and tackling ‘waste’ in the pensions system.
And campaigners affected by the HPE issue hope they can shine a spotlight on the current situation affecting them.
Mr Gemmell also asked Pensions Minister, Emma Reynolds, if she would meet him to discuss David and Patricia’s case.
He added: “The issue affects some hundreds of thousands of people.”
However, the Minister, while happy to meet the Ayrshire MP, would only say that the current review would look at how “current pension schemes” “can improve” outcomes for “future pensioners.”
She added: “We are looking at driving scale in consolidation of defined contribution pension schemes and local government pension schemes, and at a shift away from cost to value. I know that there is interest in that from across the House.”
Patricia Kennedy, from Coylton, has fought a long-standing battle with former employer Hewlett Packard Enterprise in bid to force the company to bump up discretionary pension contributions. In Scotland, David Carson is spearheading the campaign for pension ‘justice.’
Patricia has scheduled a meeting for this Saturday, November 23, at Prestwick Community Centre in Caerlaverock Road, for those who want to join the crusade, or who could be affected by the issue.
The meeting will run from 10am to 12noon. So far 49 people have signed up to attend.
To register your interest in attending e-mail Patricia at [email protected]