Former employees of the Home Builders Federation are facing huge pension losses because of the £20.5m black hole in the Construction Confederation’s fund
Some 125 HBF members had been part of the Construction Confederation (CC) scheme, but were placed in a separate account when the HBF pulled out in 2005.
Trustees of the CC scheme have applied for the body to be classed as a company so it can be put into liquidation. They could then apply to be covered by the Pension Protection Fund.
However, this would not apply to HBF members, meaning some could lose a significant amount of their pension. The trustees say that, since the HBF has not gone insolvent, it is not covered by the 2005 Pension Protection Fund Regulations.
Members are now dependent on a goodwill gesture from the HBF to plug the £3.6m hole.
Liz Bridge, a trustee of the CC scheme, urged HBF member firms to consider making contributions. She said: “It’s important that housebuilders know the pension entitlement of certain HBF employees has been devastated.”
An HBF spokesperson said: “Since 2005, the HBF has made a very substantial payment to the scheme in respect of its liability. The HBF has no continuing role in relation to the scheme.”