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  • FIRST POST
    • Muscle750
    • By Muscle750 4th Jan 18, 5:55 PM
    • 931Posts
    • 282Thanks
    Muscle750
    FS transfer figure bad
    • #1
    • 4th Jan 18, 5:55 PM
    FS transfer figure bad 4th Jan 18 at 5:55 PM
    I have today recieved my FS pension transfer value which closed in 2006 and we were transfered into a DC scheme. The figures i showed the FA in relation to the FS pension they thought as a rough guide i would be offered in region of £125k. Going on what it was valued at now and my remaining years in work etc.
    The figure they offered me was far from that and was only £48k plus they said the figure had been reduced by just over wait for it £21k because of the funding level of the scheme as a whole.
    The scheme itself went from a £18 million black hole to in excess of £33 million in 12 months. The company have put it down to poor returns and have stated no monies have been used from the scheme for the company etc.
    The company agreed some 5 years ago to put in £3 million a year to try and close the gap so to speak but with the last years figure near doubling im quite concerned as to what exactly is going on. More concerning is the fact that it appears most of the trustees have vacated and they are attempting to recruit more.
    Needless to say im not going to even contemplate on snatching their hand off on this offering.
    Should we be worried?
Page 1
    • JoeCrystal
    • By JoeCrystal 4th Jan 18, 7:16 PM
    • 1,326 Posts
    • 793 Thanks
    JoeCrystal
    • #2
    • 4th Jan 18, 7:16 PM
    • #2
    • 4th Jan 18, 7:16 PM
    I wouldn't worry about it. If the company goes bust, it will go into Pension Protection Fund which will still pay you the pension even though there is some limits and reduction of the amount but hey, it is still an guaranteed index linked income.
    • Alexland
    • By Alexland 4th Jan 18, 11:28 PM
    • 1,160 Posts
    • 784 Thanks
    Alexland
    • #3
    • 4th Jan 18, 11:28 PM
    • #3
    • 4th Jan 18, 11:28 PM
    I think you will just have to accept they are not in a position to make you a good offer without further damaging the position of other scheme members. Trustees are important but so is the company's ability and willingness to make sufficient catch up payments.

    Suggest you do some reading up on the benefits and disadvantages of what would happen if the scheme went into the PPF. From what you say this may be probable and preferable to transfering out under this offer.

    You may want to put additional contributions into the DC scheme such that you still have the anticipated standard of living in retirement.
    Last edited by Alexland; 04-01-2018 at 11:33 PM.
    • kidmugsy
    • By kidmugsy 4th Jan 18, 11:54 PM
    • 9,985 Posts
    • 6,741 Thanks
    kidmugsy
    • #4
    • 4th Jan 18, 11:54 PM
    • #4
    • 4th Jan 18, 11:54 PM
    no monies have been used from the scheme for the company etc.
    Originally posted by Muscle750
    That would probably be a quick route to jail, wouldn't it?
    Free the dunston one next time too.
    • dunstonh
    • By dunstonh 4th Jan 18, 11:59 PM
    • 90,461 Posts
    • 57,254 Thanks
    dunstonh
    • #5
    • 4th Jan 18, 11:59 PM
    • #5
    • 4th Jan 18, 11:59 PM
    The scheme itself went from a £18 million black hole to in excess of £33 million in 12 months.
    A lot of that will be down to a change in accountancy methods which have increased liabilities "on paper" significantly.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • westv
    • By westv 5th Jan 18, 8:50 AM
    • 4,423 Posts
    • 2,045 Thanks
    westv
    • #6
    • 5th Jan 18, 8:50 AM
    • #6
    • 5th Jan 18, 8:50 AM
    it is still an guaranteed index linked income.
    Originally posted by JoeCrystal
    Not index linked for anybody who is (or will be) receiving payment for service prior to 1997. Only applies up to the date the claim commences.
    • Muscle750
    • By Muscle750 5th Jan 18, 10:37 AM
    • 931 Posts
    • 282 Thanks
    Muscle750
    • #7
    • 5th Jan 18, 10:37 AM
    • #7
    • 5th Jan 18, 10:37 AM
    The term change in accountancy methods strikes me as "Glazing over the true facts" Which also relates to a time a few years ago when the companies valuation was questioned after they failed to mention the black hole when it was seeking further investment. Still as long as the CEO is on in excess of £400k a year who cares lol.
    • Malthusian
    • By Malthusian 5th Jan 18, 12:05 PM
    • 3,586 Posts
    • 5,520 Thanks
    Malthusian
    • #8
    • 5th Jan 18, 12:05 PM
    • #8
    • 5th Jan 18, 12:05 PM
    There are no facts when it comes to actuarial assumptions. Nobody knows how much the scheme is going to have to pay out in its lifetime, because nobody knows when the members are going to die (and how many will be married, what investment returns will be etc etc).

    The fact is that the scheme has not missed a single pension payment and if it ever actually does run out of money, and the sponsoring employer also has no money, the worst case scenario is that it will go into the Pension Protection Fund.
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