UK: Administrators tell Federal-Mogul arm to wind up pension fund - paper
Tens of thousands of current and former UK employees of car parts company Federal Mogul have been warned that their pensions are under threat, according to the Daily Telegraph.
Administrators have told Federal Mogul, a US business that was plunged into bankruptcy, that the pension fund of its UK arm should be wound up, the report said.
The Telegraph said the fund has a shortfall of £875 million, which means that future and current pensioners could see their benefits cut or frozen.
A spokesman for the UK's Amicus union told the newspaper: "This is yet another example of how vulnerable British workers are. Their pensions are not protected."
Federal Mogul, which bought Manchester car parts maker T&N in 1997, says it wants to keep paying into the fund as it attempts to emerge from bankruptcy, the Daily Telegraph added.