THREE quarters of the members of the Dennis pension scheme will receive less than half of their entitlements after it emerged that trustees of the busmaker’s fund have begun winding up the scheme.
Chris Martin, managing director of Independent Trustee Services, who has started winding up the scheme, which has a £23.2 million shortfall, has told 455 of the fund’s 615 members that they will receive only 40 per cent of their entitlement.
Dennis, which makes London double-decker buses, was part-owned by Mayflower, the engineering group that collapsed under £250 million of debts three months ago.
Mr Martin said that the Government’s effort to set up a pension protection fund was too late to save the Dennis scheme members. In the meantime, government plans for financial assistance, mooted last month, provided little certainty.
Mr Martin said: “The changes to pension law are well-intended, but at the moment it’s very hard for the industry and all the members to work out where they are at.”
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The Dennis scheme, the most underfunded of Mayflower’s various pension schemes, had £18.4 million worth of assets, but a £41.6 million buyout cost.
The Dennis bus-building business formed part of Mayflower’s TransBus division, which also included the Paxton and Alexander brands.
Mr Martin said that the 455 scheme members would receive only 40 per cent of their pensions because of the scheme’s chronic cash shortage. The other members, who already draw a pension, will continue to receive their full entitlement.