LISTER Petter employees due to retire in three years could be among 15,000 people who receive 80 percent of their pension via the Government's Financial Assistance Scheme.
Last year hundreds of past and present staff feared they would receive as little as ten to 20 percent of the amount they were expecting on retirement after the company pension fund folded with a deficit of around £10 million.
In June a new scheme was established although it only benefited current employees.
MP for Stroud David Drew has welcomed the announcement from the Secretary of Work and Pensions Alan Johnson that those who are three years from retirement could get 80 percent of their pensions from the scheme.
Lister Petter, which has its head office in Dursley, is on a list of pension schemes as potentially eligible for assistance.
Mr Drew, who has been pushing the case with the Minister for Lister Petter to be eligible for help, said: "I am very pleased to hear this news. The scheme hasn't yet closed but if people's pensions will be in the order of 80 percent then this is a much better than we had feared.
"Clearly there is more work to be done and I will be looking closely at what is being offered, but this is a very positive announcement and I am glad that the Minister has listened to the case I and other MPs had put to him."
The announcement is currently only about some of the workers affected by the pension scheme problems but it will help a significant number of people who have lost out, including those workers facing the most severe problems.
The government wanted to make clear as early as possible the position of those older workers with the least chance to make up the short fall. The application process will begin in April and once all the applications are received the Government will be in a position to ascertain the total level of liabilities in the pension schemes coming into the Financial Assistance Scheme.
The government is still considering other categories of workers affected and there will be further announcements.
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