ASDA closes final salary scheme

jamesd

Well, if they haven't said what the alternative is, it seems that you need to find out so you can make a proper choice. I don't think that accepting linking it to CPI is a good idea.

There's no direct relationship between the s2P paid into a defined benefit pension and the amount of rebate. It's calculated in three parts and one part varies with age. Contracting out won't decrease the NI you pay but some money will be paid into your chosen pension scheme. After 2012 the current plan is the requirement to track the difference between contracted out/protected rights money will cease and it can become part of your main pool.

Shimrod

The other thing to bear in mind is that these changes aren't definitely going to happen. You will now enter a consultation process which lasts for at least 60 days. While this is not a negotiation, there will be an element of that going on - the company has set out it's position and hopefully through the consultation process there may be room for some movement.

As well as the immediate impact of the pension benefit changes, the pension probably provides valuable life cover as well as guaranteed spousal and dependent pensions should you die. These are all things you will have to pay for in the future, and your representitives through the consultation process should be raising these issues and hopefully have proposals to mitigate this. The best way to offset the impact of NI increases is to propose a salary sacrifice scheme - better still if the company will also add some or all it's NI saving to your pension pot.

DoubleSix_2

Shimrod wrote: »

The best way to offset the impact of NI increases is to propose a salary sacrifice scheme - better still if the company will also add some or all it's NI saving to your pension pot.

Don't hold your breath on that one, they pocketed the NI saving when they changed the hourly paid staff to a salary sacrifice scheme IIRC.

Loughton_Monkey

DoubleSix wrote: »

Don't hold your breath on that one, they pocketed the NI saving when they changed the hourly paid staff to a salary sacrifice scheme IIRC.

Is that what they call 'Asda Price'?

margaretclare

So what kind of pension scheme are they offering now, if any?

My youngest GD works for them, for their Home Shopping Centre (i.e. internet grocery). No idea whether she has joined any pension scheme - the only job she could get was part-time, 26 hours a week which is not a lot of use to a young single lass of 20, but better than not working at all.

conic76

For colleagues (hourley paid) it is a stakeholder with 2 or 3% contributions that are matched by ASDA. The scheme i am referring to is management only DB and closed 5 years ago to new entrants.

How would i find out who is representing the group as currently it just seems like we vote on the cpi or other unknown option and thats it! Not a great deal of consultation going on really and yes it is a 60 day consultation period.

Shimrod

conic76 wrote: »

How would i find out who is representing the group as currently it just seems like we vote on the cpi or other unknown option and thats it! Not a great deal of consultation going on really and yes it is a 60 day consultation period.

The company should have written to you with details of the changes and how representatives for the consultation are chosen. It would be unusual for them to take representations direct from the affected members unless the number of people in the DB scheme is very small (very low tens).

sparkymark_3

:eek: no news from ASDA at all !! (surprise surprise) expect they regard us (deferred members ?) as just a pain in the neck and will TELL us what will hapen when they have forced the change on the current employees ??!!

Andy_L

sparkymark wrote: »

I have a frozen ASDA Final salary scheme pot from when I was made redundant a few years ago - assume they will transfer monies into defined contrib. scheme,

No, your frozen FS pension will remain frozen. The move to a new pension scheme will only affect the future service of current employees.