No rise this year for Ford pensioners

HUNDREDS of pensioners who worked for the Ford manufacturing facility in Cork have been told there will be no increase in their pensions this year.

Letters were posted to the company’s pensioners stating that there isn’t enough money in Ford’s pension fund to grant the increase.

Ford’s closed its Cork facility in 1983, with the loss of 847 jobs.

The letter, from Mercer Human Resources read: “I write to inform you that the actuary to the Ford contributory pension, Hewitt and Becketts Ltd, has completed an annual review of pensions and has advised that there are not sufficient moneys available within the fund to grant an increase as at January 1, 2004.

The last pensions rise was granted in August 2003.

Pensioners were told the situation will be reviewed again in January, 2005.

Former Ford worker Mark Hanly, who retired from the company’s Cork clerical office 25 years ago, said he was shocked at the news. “I retired 20 years ago on £50 a week. There was a small increase last year after seven or eight years of nothing. I have been speaking to a lot of other Ford pensioners about this letter and to be honest, this isn’t a surprise, nothing about Fords would surprise us.”

But a Ford spokesman defended the situation.

“All benefits have been paid and continue to be paid in accordance with the rules,” he said. “The Ford Contributory Pension Fund is a Defined Benefit Scheme and is in every respect a distinct legal entity from the principal employer, Henry Ford and Son Ltd. The scheme is governed by the Trust Deed and Rules. Pensions are reviewed on an annual basis at which point an increase may be granted.

“The Actuary advised that there was no funding available to grant an increase after the latest review.”