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HELP GIVEN ON PRIVATE PENSIONS

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The Treasury has cleared the way for local government staff wrongly persuaded to join private pension schemes to r...
The Treasury has cleared the way for local government staff wrongly persuaded to join private pension schemes to receive compensation and a public sector pension.

In the 1980s, thousands of local government staff, nurses and teachers were lured away from public sector pensions by the low contribution rates of personal schemes.

A KPMG survey showed 90% of workers who opted out of occupational schemes, in the public and private sectors, were wrongly advised.

An agreement with the personal fund companies was announced by the Treasury on Tuesday, giving weight to a commitment already made by the private sector to compensate contributors.

Public sector workers will be able to opt back into occupational schemes. The cost of re-entry will be met by personal fund companies, which will repay the total originally transferred out plus interest.

Money will also be paid for lost employer contributions, but the details have yet to be decided.

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