Final Salary pensioner's concerns

chrissy7

My husband has been drawing a very good final salary pension for nearly two years, after over 30 years of employment with the same firm. His company had closed the scheme to new employees a few years prior to his retirement. The company has now informed its current employees that they intend to close down the scheme altogether within two months although we do not fear that they will become insolvent. Should this closure have any impact on pensioner members of the scheme such as ourselves?

EdInvestor

chrissy7 wrote: »

My husband has been drawing a very good final salary pension for nearly two years, after over 30 years of employment with the same firm. His company had closed the scheme to new employees a few years prior to his retirement. The company has now informed its current employees that they intend to close down the scheme altogether within two months although we do not fear that they will become insolvent. Should this closure have any impact on pensioner members of the scheme such as ourselves?

No. Either they will operate the scheme in run-off, or there will be a buyout by an insurance company. Neither case should affect anyone receiving their pension already as long as there is no solvency problem.

See this site in case there is:

https://www.pensionprotectionfund.org.uk

chrissy7

Thanks for the reassurance. Could you just clarify 'run off' for me please?

EdInvestor

Run off means that no new money is coming in from other contributors (only from the company itself and its investments).