Got something to say or just want fewer pesky ads? Join us... 😊

Pension Scheme closures



sod1

New member
Jan 12, 2008
1,557
Brasov , Romania
We have been advised recently that the company are closing the final salary pension scheme of which i am part of.

I was wondering if any of the good folks of NSC had suffered with this and have any advice or questions to ask during the consultation period

there are five unions involved but any additonal advice would be appreciated
 


timbha

Well-known member
Jul 5, 2003
9,834
Sussex
you need to know what stakeholder scheme will replace it and how much your employer will contribute on your behalf. Ask them to also offer a contribution matching scheme.

It's a big loss but most fnal salary schemes are unsustainable as people live longer.
 


D

Deleted member 18477

Guest
Yep! Private pension schemes are getting worse. Same in my company. Nothing we could do about it as the business would probably have gone under eventually as people are living longer than they expected clearly.

Another scheme came in to replace it which isn't as good but better than no private pension...
 


Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
What happens to the pension pot you have accrued already. Does that fund part of your pension under the same terms as the final salary pension or is it given back on retirement to buy an annuity.
 


seagullsovergrimsby

#cpfctinpotclub
Aug 21, 2005
43,690
Crap Town
I am a BT "deferred pensioner" , I took redundancy and left 10 years ago and I get my pension at 60. If I had remained at BT I would be in a similar position to you , all the contributions you've made into the final salary scheme are safe and cannot be "Maxwelled". If there is a replacement defined benefit scheme it will more or less be based on average salary and the contributions are higher plus its almost certain the qualifying retirement age is raised to match state retirement age. I was at an age where I missed out on taking my pension straight away alongside the redundancy payout (43 at the time but had to be 50+ to get it with anyone under 50 having to wait until they were 60)
 




Diego Napier

Well-known member
Mar 27, 2010
4,416
you need to know what stakeholder scheme will replace it and how much your employer will contribute on your behalf. Ask them to also offer a contribution matching scheme.

It's a big loss but most fnal salary schemes are unsustainable as people live longer.

Err, one individual asking for changed terms & conditions won't make a won't make a jot of difference unless it's a one man and his dog set up. If there are 5 unions involved I'd suggest it's a pretty big organisation and expect that contribution matching rates will already be decided.
 


Daffy Duck

Stop bloody moaning!
Nov 7, 2009
3,824
GOSBTS
If the scheme is just being closed and replaced with one you have to contribute to yourself, don't transfer the funds from the final salary one into the new one.
Just start the new one and leave the funds in the old one alone, if you are able to do that.

Final salary schemes are like gold dust so even if no more contributions are made into it, the benefits when you eventually retire will never be matched by the one replacing it.
 


seagullsovergrimsby

#cpfctinpotclub
Aug 21, 2005
43,690
Crap Town
What happens to the pension pot you have accrued already. Does that fund part of your pension under the same terms as the final salary pension or is it given back on retirement to buy an annuity.

The final salary pension will be paid out as a pension plus a lump sum , the new scheme will end up with a separate pension pot which will buy an annuity.
 




Beach Hut

Brighton Bhuna Boy
Jul 5, 2003
71,906
Living In a Box
Fortunately our final salary pension is protected by an act of Parliament
 


















S'hampton Seagull

Well-known member
Oct 12, 2003
6,803
Southampton
Reckon we could have an amazingly tedious discussion then. I'm relieved though: there's safety in numbers when the witch hunt begins

I don't do the actual closing of schemes, just the administration of them
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,265
We have been advised recently that the company are closing the final salary pension scheme of which i am part of.

typically this means it will be closed to new employees, it wont effect existing contributers.
 











Paying the bills

Latest Discussions

Paying the bills

Paying the bills

Paying the bills

Albion and Premier League latest from Sky Sports


Top
Link Here