Deferred Occupational Pension with Bradford and Bingley, is it safe?

pinkparrott

Hello all, i would be grateful for any advice:
my husband worked for Bradford and Bingley for a period of 10 years untill 1994, he has a deferred occupational final salary pension with them for this period, he also transferred in an older pension from bt etc.

Now with all thats happened with Bradford and Bingley, will this pension be safe totally?

I think that it maybe?, as i thought that the pension "pot" is held seperate from the main buisness and cant be touched ? is this correct. Anyone who knows better i appreciate any help.

My husband is 51 and the pension is due at age 60.

I need to know as this makes up a large portion of our retirment planning and if its not safe , we need to get saving quick!!:eek:

Day_Trader

It's safe. All I need to say on that one!

EdInvestor

If there was any problem the pension would come under the PPF. Check its rules here:

http://www.pensionprotectionfund.org.uk/

jamesd

It's not totally safe if the Pension Protection Fund becomes involved. See their Protecting People's Pensions leaflet. Briefly, up to 90% up to a maximum of 27,770 is protected and contributions for service prior to 1997 won't get inflation-linked increases after retirement.

Given the loss of inflation-linking you would need to start providing for replacement of that part of the pension so that you didn't become increasingly poor due to inflation as you grew older.

However, this may not matter to you since it's only relevant if the pension scheme can't meet its obligations. You'll have to check with the scheme administrators to see what's going on.

pinkparrott

Hi thanks for the advice, i will try again to get in touch with them, as i couldn't get through last week, as i suspect others are worrying too.
Bu from the last info we got they were well funded at their last valuation so fingers crossed they atill are.
many thanks, forgot about ppf, so that has put my mind at rest slightly.

DRS1

Why don't you write to the trustees/administrator asking them what the up to date position is, given recent events. You may find they have an answer all prepared.