STEEL workers from Sheppey were today lobbying the Government to try to stop their future pensions being wiped out by a legal loophole.

Six men from Allied Steel & Wire's Sheerness plant were joined by other workers from ASW's Cardiff works at a series of meetings with government ministers and officials in London.

The delegation, which was met by Sheppey MP Derek Wyatt, wants the Government to give greater protection to workers whose pensions are jeopardised when firms fail.

ASW's final salary schemes at Sheerness and Cardiff automatically began being wound up when the firm went into receivership in July.

Workers were then told by Pinsent, an independent trustee company called in to oversee the process, that they would not get the pensions they were due, based on length of service and salary at retirement.

Under current pension law, the fund can only guarantee the pensions of those already retired. It cannot guarantee pensions for current employees.

Keith Plowman, chairman of the ASW Sheerness Pension Action Group formed to campaign for changes in the law, said: "Now we find ourselves in a situation where we believe that we have been legally 'mugged.'

"We have no guarantee of receiving anything more than a fraction of our promised retirement benefits, with no indexing of the valuation. The Government has a responsibility to make sure that we receive our pensions."

Derek Wyatt, who is due to start a House of Commons adjournment debate about the pensions crisis tomorrow (Wednesday) evening (Oct 16), described the current law as "absurd." He added: "When Mirror Group pensioners suffered because Robert Maxwell looted their pension fund, the Government stepped in to fill the breach.

"I am asking the Government to take the same action for ASW pension scheme members, many of whom have no other savings, so that they can enjoy a decent retirement."

KPMG, the receivers, says confidential talks are still continuing with a prospective buyer for the Sheerness plant.