An Ayrshire woman leading a campaign against a pensions 'injustice' believes a new act of Parliament could still leave affected pensioners without a penny. Pat Kennedy, from Coylton, is a member of the HPPA UK (Hewlett Packard Pensioners Association), which has grown and become the Pre-97 Pension Justice Alliance.
The group represents a coalition of pension groups from multiple companies around the country. They claim they have faced 'significant hardship' over the last two decades or more due to changes in their pension plans. Their pension pots have been massively reduced from their pre-1997 contributions because legislation only index-linked contributions from 1997. They want the companies involved to 'make good' on the value of the pensions which are supposed to provide financial security.
Impact on Ayrshire former employees
In Ayrshire, the issue directly affects former employees of UK Digital Equipment Corporation. The firm employed people at its plant at Mosshill Industrial Estate, Ayr, between 1977 and 2002, until it was wound down by new owners Hewlett Packard. In 1998, Digital Equipment merged with Compaq, and in 2001 that organisation merged with Hewlett Packard. In 2015, Hewlett Packard split, and Hewlett Packard Enterprise took over responsibility for the Digital pension scheme.
It is estimated that around 1,500 people across the Ayrshire region could be affected by massive pension reductions.
New Act unlocks surplus but no guarantee for pensioners
In April, the new Pension Schemes Act 2026 was given Royal Assent. It gave companies and trustees in Defined Benefit pension schemes a 'new freedom' to release an estimated £160 billion in surplus funds to employers. However, Pat is convinced that many schemes will be converted into insurance policies through 'buy-out deals' that lock in employers' surplus gains but without sharing them with the pensioners whose payments helped create them.
Pat said: “For more than a quarter of a century, our pensions have been frozen while these schemes built up surpluses. Now that surplus is being unlocked — but there’s nothing in the law that says any of it has to come to us. Companies can convert our schemes into insurance and walk away without giving pensioners a penny of what we’re owed. We’re not asking for a handout. We’re asking for a fair share of money that exists partly because our pensions were held back for 25 years — and we’ll happily pay tax on every penny of it.”
Speaking previously about the Pensions Schemes Act 2026, Minister for Pensions Torsten Bell said the UK pensions system had been “fragmented” and “rarely ensured” that people’s savings were “working hard enough” to support them in retirement. He added: “The Pensions Schemes Act will change that by creating schemes that drive down costs, deliver higher returns, and give savers the security they deserve.” However, the Act contains 'no requirement' that any of that surplus money be shared with pensioners, meaning historic shortfalls remain unaddressed.
Appeal to new Prime Minister
Pat is now issuing a plea to supporters in an effort to pressure new PM Andy Burnham into addressing their concerns. In an address to her colleagues and supporters via a mail shot she said: “This is a call to action asking you to send an email to your local MP asking him/her to contact our new Prime Minister. There is no point in writing again to the Pensions Minister or the DWP (Department for Work and Pensions). We know the limits of their understanding of the pre-97 problem. We have tried to get them to understand the real-world implications of the Pension Schemes Act 2026. Yet, they are still not listening. Mr Burnham has said that “he stands for justice”. He has also said that “he wants to put decency back at the heart of the British state. We need our MPs to help us to get our case to Mr Burnham.”
To find out more about the Pre-1997 Alliance, go to their YouTube page or search for Pre-97 HPPA & Alliance Pension Justice on Facebook.
