Anyone who chooses to pay monthly contributions into a pension scheme, rather than take a flutter on a horse at the local bookie's, is probably not expecting to lead a wild life. But it seems reasonable to expect that those pension contributions will lead to some kind of income in retirement.

However, workers at two Oxfordshire firms could be forgiven for thinking that pension contributions are little different from the National Lottery. One group of employees has been told their pensions are secure, despite the company hitting financial problems less than two years ago, while another group, whose employer went under, languish with nothing.

The pension scheme at Begbroke-based Solid State Logic, which makes music consoles, has been rescued by the Pension Protection Fund (PPF), much to the relief of the scheme's 167 members.

Solid State Logic went into administration in June 2005. Musician Peter Gabriel, with a partner, bought the assets from the administrators, but the liability to pay pensions to former staff was taken over by the PPF.

Solid State Logic's financial director, Chris Smith, said: "This is obviously good news for those of our staff in the old SSL pension scheme."

But the same cannot be said for members of Early's Blankets' pension scheme, where between 75 and 100 pensioners are still left with nothing - simply because financial problems hit Early's before the PPF came into operation in April 2005.

PPF spokesman Richard Hunt, said: "The PPF scheme is funded by a levy paid by companies with occupational pensions. It provides a safety net for firms that got into difficulties after April 2005."

Companies such as Early's, which got into difficulties in 2002, come under the publicly-funded Financial Assistance Scheme.

Tony Clapton, 68, who contributed to the Early's scheme for 38 years said: "I should have got £18,000 lump sum plus £120 a week, but I got nothing."

He was particularly angry that the Government rejected the ruling of maladministration against it by the Parliamentary Ombudsman, Ann Abrams. But he was heartened that a High Court judge ruled last month that the Government's rejection was unlawful. In last week's Budget, the Chancellor caved in to pressure and promised to pump an extra £6bn into the scheme.

Work and Pensions Secretary John Hutton, said: "The increase means that all eligible members of affected pension schemes will get support broadly equivalent to 80 per cent of their core pension rights up to £26,000 per year. We think this is as much as the taxpayer should be asked to pay."

However, the Early's pensioners have yet to see any money.

Mr Clapton added: "It took cases like ours to bring the PPF into existence. I wish the Solid State Logic pensioners good luck."

Mr Hunt said that 162 Solid State members who had not reached retirement age when the company went into administration would receive 90 per cent of their entitlement. The other five who had already retired would receive 100 per cent.

He added that 13 schemes representing 7,345 members nationwide, including MG Rover in Birmingham, had now transferred to the PPF.

PPF chief executive Partha Dasgupta said: "We are here to safeguard the savings of the 12 million people who are members of eligible defined-benefit occupational pension schemes."

The cost of meeting the ombudsman's March 2006 recommendations for compensating pensioners such as those at Early's has been put at £15bn. Pensions campaigners believe that this would be money well-spent, because it would restore confidence in occupational pensions.

Because of employer contributions, occupational pensions do usually provide a much better retirement income than private schemes - but because they are voluntary, many workers fail to join up, even when they work for companies with good schemes.

Many more of tomorrow's pensioners will hopefully be covered by the proposed system of Personal Accounts, which will see employees enrolled automatically into a savings vehicle where they put in four per cent of earnings.

This will be matched by a three per cent contribution from employers and one per cent in tax relief.

The scheme - due to come into force in 2012 - is aimed at getting up to 10 million workers saving towards their retirement and is one of the main planks of the Government's policy to tackle the pensions issue.

MPs have supported the idea of collection being part of the PAYE process, despite Government reticence over the issue.

Terry Rooney, chairman of the Work and Pensions Select Committee, said: "The principles of the personal accounts system are exactly right - giving employees access to a low-cost savings scheme, where they can contribute, knowing their employer and the taxman are also putting money in.

"What we need now from the Government is serious engagement to make the system workable for employers and employees, and for it to set out its proposals on the provision of advice as soon as possible."