Reader's letter: end pension nightmare

In early 2016, the company was acquired by Berkshire Hathaway Inc (BHI), a giant US corporation owned by Warren E. Buffett (one of the world’s richest men).

The small SMW Pension Plan does not provide indexed pensions for services before 1997 and some of its oldest members have seen their pensions more than halved in real terms since they retired.

Pensions must be reviewed every three to five years but any increases for service prior to 1997 are at the company’s discretion and no discretionary increases have been paid since 1995.

In 2017, on behalf of affected pensioners, Hereford MP Jesse Norman wrote to Mr Buffett stating the case for fair treatment of the older pensioners.

Buffett’s reply made it clear that his corporation does not index the pensions of its employees and cannot justify non-statutory awards for those “who have never worked for Berkshire Hathaway”.

The pensioners’ group instructed their elected Trustee Director Les Collard to ensure that, at the next review – due this year – minimum cost proposals were made which would save SMW up to £2million per annum through to 2024.

The proposal was simple: close the plan to new service accruals. This would result in an actuarial surplus sufficient for all pensioners to be treated fairly, and to restore pensions to their real value at no additional cost to SMW.

A long-term recovery plan could then be agreed by SMW and the Trustees.

However, in 2018 the company changed the rules for selection of Trustees and reduced the number from six to five.

Les Collard was removed and a senior company manager selected as his replacement.

The pensioners want to ensure that their views and proposals are properly considered in the future reviews.

Our proposal to close the plan to new service and use the savings to treat all pensioners fairly remains the minimum cost option.

Special Metals Wiggin Pensioners Group.