Council was reckless to stop payments (From The Wiltshire Gazette and Herald)

Council was reckless to stop payments

I AM grateful to Don Reeve for his reply to my letter condemning the executives responsible for the nation-wide collapse of occupational pension funds (EA June 3).

Unfortunately, his letter contains a number of omissions and inaccuracies.

Prime Minister Thatcher gave permission for councils to reduce their pension fund balances "at their own discretion."

The majority of fund managers chose to ignore this advice.

Wiltshire County Council recklessly ceased contributions for three years, resulting in a £40m deficit which, on achieving unitary status, Swindon council taxpayers were called upon to replace from the Brunel Centre sale.

An actuarial valuation of the pension fund every fifth year, bearing in mind the vagaries of money markets is, in my view, a sick joke.

F AVENELL

Swindon