Pensions threat at Parsons

MORE than 4,000 members of an earnings-related scheme will see their pensions slashed if the US owners of Brentford-based Parsons Energy & Chemicals wind up the fund.

Parsons, which employs around 120 in the UK, closed the scheme in August 1998. It has refused to make up shortfalls in funds, saying these would force the UK company under.

Last November Parsons decided to wind up the fund, but this can take up to six years and involves selling assets, largely to insurance companies.

The case is likely to be brought to the attention of the Pensions Ombudsman, whose rulings on topping up funds to protect pensions can be legally enforced.

So far the US parent, which employs more than 11,000 and operates in 80 countries, has disclaimed any responsibility for pensions in the UK. No one was available to comment at Parsons UK.