Oakeshott Welcomes Marks And Spencer's £400m Pension Fund Injection

1.03.05pm UTC (GMT +0000) Tue 2nd Mar 2004

Lord Matthew Oakeshott, Liberal Democrat Pensions Spokesman in the House of Lords, today welcomed Marks and Spencer's announcement of a £400 million injection into its pension fund. This will virtually eliminate its pension fund deficit by bringing its funding level up to 94%.

In a statement Lord Oakeshott said: "The day before the Second Reading of the Pension Bill, Marks and Spencer is paying £400 million into their pension fund and making the risk of default negligible."

"But under the Government's current proposals for the new Pension Protection Fund, Marks and Spencer's fund will not gain a penny, for the first year at least. And they will still have to pay the same insurance premium per head as a firm on the edge of bankruptcy with a pension fund in massive deficit."

"The Government's poll tax on pension funds is quite simply giving good employers no incentive to follow Marks and Spencer's excellent lead."