The government has said that it is open to proposals from the Mineworkers Pension Scheme on its surplus sharing arrangements.

In parliamentary written questions and answers addressed to former Pensions Minister and newly appointed Secretary of State for Business, Energy and Industrial Strategy Richard Harrington, Labour MP for Easington Grahame Morris questioned whether Harrington will enter into negotiations with the Mineworkers Pension Scheme trustees to discuss the surplus sharing arrangements.

Responding, Harrington acknowledged that while the surplus-sharing arrangements “have worked well to date”, the Department for Business, Energy and Industrial Strategy “would be willing to consider any proposals put forward by scheme trustees”.

Harrington added: “The presence of the government guarantee has enable the scheme trustees so invest as to target surpluses, which has resulted in a 30 per cent increase in payments to members.”

Although open to proposals, the Minister stated that “the Department cannot unilaterally amend the terms of the scheme”.

At the end of last year, former miners called for a review of their pension agreements, to gain a larger proportion of their scheme’s surplus.

The UK government receives 50 per cent of a surplus from the Mineworkers’ Pension Scheme as part of a guarantee agreed upon following the privatisation of the coal industry in 1994. The agreement meant that if the scheme has a surplus, the government and scheme members would share it equally.

Pensions Age is yet to receive comment from the Mineworkers Pension Scheme as to whether they will be making further proposals.

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