drawing pension

Running_man

Hi.I have agreed to take my pension at age 50.
What i would like to know is-If I am already drawing my pension and the pension company folds do I still get the pension?

Does the goverment pay out the 90% entitlement? OR Do I then have to wait till retirement age?
Do I just lose the pension?

:huh:

TMFTP

Normally when you buy an annuity your pension pot is given to an annuity provider who arrange to pay you. In this case, the company you worked for has no further liability. The provider is paying you an insured amount, and even if they go bust their insurer would inherit the liability to pay you.

In some (very, very few) cases I've seen, the company you worked for may reimburse you from the scheme funds. Typically done where you have a shortened life expectancy, and the expected total cost of paying you is less than it would cost them to buy an insured amount (as above) with a provider. In this case, your company scheme retain all risk and liability.

Who is providing your income?

jh2009

The minimum age for early retirement increases to 55 from 50 from 6 April 2010.

This may not be relevant to the query raised, but I thought i would point this out in case the poster here is planning on retiring after 6 April 2010 and didnt know this.

dunstonh

What i would like to know is-If I am already drawing my pension and the pension company folds do I still get the pension?

What type of pension would it be and would type of pension income would it be?

Does the goverment pay out the 90% entitlement?

Protection is not offered by the Govt.

Running_man

It is a final salary pension .Though i no longer work for that company.taking the lump sum and reduced pension

Running_man

Also says get paid by the pensionprotection fund.But what I dont know

TMFTP

There's more on the Pension Protection Fund's website.

They've got a "top 10 questions" sheet here:

http://www.pensionprotectionfund.org.uk/DocumentLibrary/Documents/ten_things_blue.pdf

From what you've said, it sounds like they would pay 90% in your instance (see point 10 on the link). May be 100% if you retired on ill health grounds.