Closure of Anglian Water pension scheme scrutinised by head of influential government committee
- Credit: Anglian Water
The head of an influential government committee has waded into a row over the decision by two water companies to close their defined benefit (DB) pension schemes.
Frank Field, chair of the Commons work and pensions select committee, has written to the water regulator Ofwat about the move taken by Anglian Water and United Utilities, which a union has claimed could 'greatly erode' employees' retirement incomes.
In his letter to Ofwat chief executive Rachel Fletcher, Mr Field said there appeared to be 'no effective restraint on these firms' policy of distributing massive sums to shareholders while cutting the pension benefits their employees are counting on for their retirement'.
Workers at Anglian Water have accepted the changes to their pension scheme.
Following criticism by the Unite union, an Anglian Water spokesman said the new arrangements offer an 'equitable, fair and financially sustainable pension' for employees.