Pension Scheme closures

[Silkster365]

Qualified pensions advisor - PM me if u want to. Happy to help

 

[seagullsovergrimsby]

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

What some companies are doing now is closing the final salary scheme to eligible employees and shifting everyone into a defined contribution scheme. No one loses out as their contributions in the final salary scheme are ring-fenced and paid out at retirement age.

 

[sod1]

appreciate the comments people , they have prompted me to read the literature in depth... from what i understand the money accrued in the Defined Benefit section stays where it is and a new defined contribution scheme is started , even so the unions (unite, unison and the RMT amongst others) seem intent on fighting the decision , i feel to no avail though

 

[elbowpatches]

Well you do get lots of holidays.

Will. Not. Bite.

 

[Super Steve Earle]

Bad time to mention that this is exactly what I do for a living? *hides*

Teachers can't say or do anything without saying 'I'm a teacher' first. Interviewed one last week who said it within 5 minutes!

 

[Dandyman]

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.

Final Salary schemes are sustainable if employers don't take pension holidays and everyone makes sufficient contributions.

 

[brighton rock]

Hi I am a pensions trustee on a final salary scheme and have a good understanding of pension schemes
The Hutton report is well worth a read online and seems to be a loose guide to where most pension schemes look to be heading

 

[Lord Bracknell]

Final Salary schemes are sustainable if employers don't take pension holidays and everyone makes sufficient contributions.

... which was what went wrong with some public sector final salary schemes. Year after year after year, the East Sussex Pension Fund used to be raided by ESCC to keep the rates down (and, later, Council Tax). No employer contributions were being made and the auditors weren't complaining, because the fund was "big enough" to cover outgoings. No sensible forward projections were being made, either by the fund managers, the employers or the auditors. The ONLY warning noises were coming from the trade unions, but nobody was listening.

Outcome ... the eventual collapse of the scheme and its replacement with something very much worse. This wasn't just a local problem, it was national. But avoidable.

People complain about the "generosity" of the old local government pension scheme, but forget that the reality was that, for much of the time, the ONLY contributions being made into the fund were from the employees. The investments of the fund were topping the pot up, but not as much as would have been the case if the employers had been properly contributing.

Scandalous.

 

[timbha]

Final Salary schemes are sustainable if employers don't take pension holidays and everyone makes sufficient contributions.

of course, but for most schemes the deficit is increasing