Confederation staff braced for £8m pension black hole

Former Construction Confederation staff face pension misery because of an £8m black hole in the final salary fund.

The pensions of up to 100 former staff are understood to be at risk, including the pensions of some former staff at the Building Employers Confederation and House Builders Federation.

Details of the Construction Confederation finances are due to be published shortly.

A disgruntled scheme member told CJ: "We are waiting to hear what the official shortfall is but the word is it's as much as £8m. People are very worried. No one knows what is going on and how much pension they will receive."

The Construction Confederation is due to be wound up at the end of the year, which will crystalise the liabilities and shortfall in the pension scheme.

Because the Confederation is unincorporated, members are worried that they will not be eligible for top-up funding from the government's Pension Protection Fund.

Another source said: "We hear that the pension trustees are investigating whether the Confederation can be given limited liability status, which could afford protection. But what is worrying is thousands are being spent on legal costs at the moment."

Former staff at the House Builders Federation could be worst off because they are more likely to fall through the safety net. The HBF paid nearly £2m into the pension pot in a settlement to clear all its future liabilities.

This has made the situation more complex for HBF pension members and lawyers are understood to be looking at whether they would be eligible for government pension support.