WPC writes to PPF for clarification on Norton pension scam compensation

The Work and Pensions Committee (WPC) chair, Stephen Timms, has written to the Pension Protection Fund (PPF) to request further clarification as to whether it will be looking to provide access to the Fraud Compensation Fund (FCF) for members of the Norton Motorcycles Pension Scheme.

In his letter, Timms noted that Dalriada recently told scheme members in April 2023 that “the best chance of making a material recovery of members’ funds will be by way of successful claims on the FCF”.

Although Timms acknowledged that the FCF is meant to be a scheme of last resort and PPF will ultimately need to be satisfied that it cannot recover funds from elsewhere (e.g. liquidation or Mr Garner’s bankruptcy) before allowing applications to the fund, it queried whether there would be any scope for flexibility to avoid further delays.

“Given the FCF has ‘agreed that there are reasonable grounds for believing that the Schemes have suffered losses as a result of dishonesty’, the time that it has taken to get to this point and the time it will take to progress claims submitted to the FCF (6–18 months), I would be grateful if you could let me know whether you are exploring the scope for flexibility on this point,” he stated.

“For example, would it be possible to use ‘assignment’, which would allow claims to be made and progressed, with any funds recouped from the bankruptcy and insolvency process going back to the FCF, offset against any payments it has already made.”

Timms requested a response by 31 May.

The WPC also previously raised concerns over the delay savers could face in recovering their money when reaching out to The Pensions Regulator to request further clarification on its work relating to the Norton Motorcycles Pension Scheme, after the former boss, Stuart Garner, was handed an eight-month sentence, suspended for two years, for illegally investing pension schemes’ money into his business.

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