Pension being 'wound up'

patgc

Hubby is a long standing employee(38 years) and his factory is in the hands of the Receivers. Their Company pension was placed in Administration in Dec. 2001 and is to be 'wound up'. due to a shortfall in funds. Four and a half years have passed and this is still ongoing. Hubby is 60 in September and asked for a Pension forecast to retire at 60. They have come back saying 'not possible' only at 65. Surely after this amount of time things should have been sorted. The Administrators fees must be coming out of the already depleted money pot. They say their responsibility is to members that have already retired and ones that havnt are bottom of the list.. By the time hubby is 65, there wont be any money left. Members retiring lately are only receiving about 45% of what they should be. Is there anything we can do.other than transfer the remaining funds to another provider which I dont think is feasible due to the cost of this.

dunstonh

If you transfer, you will only be given a transfer value that is heavily reduced in value to protect the others remaining in the pension fund.

You need to seek professional advice from an IFA that specialises in occupational pensions. Otherwise you could lose a significant amount of money.

EdInvestor

The Pensions Advisory Service may be able to help.

Is the scheme covered by the FAS? (Financial Assistance scheme for windups not covererd by the new Pension Protection Fund)

https://www.opas.co.uk

patgc

Have written to the Trustees and they say that "The Trustees have been working closely with the Financial Assistance Scheme to ensure the scheme is registered as a qualifying arrangement. Unfortunately, you (my hubby) would not qualify under the current eligibililty criteria".

They also say " Memebership data for pensioners has now been reconciled with the Revenue allowing the buy out of pensioner benefits to commence. The Trustees are in the preliminary stages of the pensioner buy out and it is anticipated that this exercise will be completed by the end of the summer".

Could some kind person explain what is meant by these two statements.