Will I ever see any of my pension?

ItMightBeUsefulOneDay

I've paid into a a few company pension schemes as I've changed jobs but I had the bulk of payments in one company as I was with them for about 8 years.

Despite assurances of how it was "ring-fenced" and an "independent fund", the parent company loaded all it's debts into the one sibling and sent it into administration. The pension scheme, we're told, has gone with it. :eek:

While I'm young enough to partially start again with a pension this could leave me retiring in my 70s (if I live that long ) or retiring on a pittance if I've lost these 8 years of contributions :mad:. I thought there were rules in place to stop people losing their pensions now? If anyone has any advice or suggestions (other than winning the lottery) I'd be most grateful.

dunstonh

Despite assurances of how it was "ring-fenced" and an "independent fund", the parent company loaded all it's debts into the one sibling and sent it into administration. The pension scheme, we're told, has gone with it. :eek:

That doesnt sound correct. If its a pension fund (as in investments) then the money is ring fenced and the company cant touch it. If its an occupational final salary scheme then you have the pension protection fund (PPF) to cover a fair chunk of it.

I thought there were rules in place to stop people losing their pensions now?

There are.

If anyone has any advice or suggestions (other than winning the lottery) I'd be most grateful.

Find out more about the pension scheme and what is happening to it. Do not rely on ex work colleagues (workplace myths are often wrong). It shouldnt just vanish.

ItMightBeUsefulOneDay

dunstonh wrote: »

That doesnt sound correct. If its a pension fund (as in investments) then the money is ring fenced and the company cant touch it. If its an occupational final salary scheme then you have the pension protection fund (PPF) to cover a fair chunk of it.

Thanks - yes it is, errr, that is was a final salary scheme. I put some in, the company put lots more in. It looked almost too good to be true, and as it turns out...

That "PPF" rings a bell. I'll rummage through the paperwork and see if there's something about that in there. If they are involved does that mean my pension (small though it is) with them will be ok? I don't suppose I can get the money out into another pension scheme - one which is just for me and isn't affected by company fat-cats lining their own pockets with bumper bonuses and cash back-handers?

jamesd

Well, you might remember that the company put in lots, so your own pockets were getting lined as well. These schemes paid in far more from the employer than the alternative schemes now in use.

You won't be able to take money out of the PPF but it should protect most of the value of your benefits unless you've been earning more than something in the higher rate income range. At that sort of income level it's possible that the limits on how much the PPF will pay could kick in. There's limited value on speculating since the PPF will be able to tell you exactly what your situation will be, though it'll probably take them a while to sort it out. I suggest that you visit the PPF member's web site and start reading everything there.

For your future pension investing, personal pensions including SIPPs are available. You take the investment risk with these and the pension you get will depend on how much money you put in and how well you do at selecting good investments. If you want a payout comparable to a final salary scheme you'd need to pay in 25-30% of your gross salary.