WORKERS who lost more than 60 per cent of their pensions when their company went into receivership say they feel their futures are still "in limbo".

Employees of the former Carpets International, on the Penyfan Industrial Estate in Croespenmaen, were devastated in 2003 when they discovered the shortfall in their pensions.

The factory was saved in a buy-out and now runs as Abingdon Flooring. Since then, they have taken on more staff and are now the UK's second largest carpet manufacturer.

Members of the Abingdon Carpets pension scheme, however, say they are still waiting to hear if they will be eligible for financial assistance from the government.

They say deferred members who were within three years of reaching retirement age, or were of retirement age, in May 2004 will receive money from the government's Financial Assistance Scheme - making up to 80 per cent of their pensions.

But they still do not know if younger members of the scheme will be eligible for the same help.

Lawrence Long, the Transport and General Workers Union representative, said members felt unsure of what to do.

"We don't know whether we should be trying to save more money for our futures," he said.

"And we don't know whether to transfer our pensions - we would not be eligible for financial assistance if we do that. We feel we are really in limbo.

"There are people here in their 50s who want to plan for their futures. Some of them put their NUM pensions into the scheme."

Islwyn MP Don Touhig said he had been involved with members of the Abingdon scheme since the start.

"I think it is very important that as a Labour and trade union movement we have worked together to get the best possible outcome for our members," he said.

"I will be continuing to work hard with colleagues in the interests of the deferred pension scheme members."

A spokeswoman for the Department of Work and Pension said: "The financial assistance scheme was set up to give assistance to those who have lost their pension through no fault of their own. We are making payments for 32 people and have said that we need to do more to speed up this process."