Threat to my final salary pension?

Debt_Free_Chick

If your employment is terminated 7 weeks before your birthday, then the pension you have already built up is not at risk. It must be paid to you, in full, on your 65th birthday. You would, however, "lose" 7 weeks of pension as you would no longer be employed for that period.

However, it's not clear that you've been building up any pension whilst you've been on unpaid leave. Do you know whether you have, or not?

Pensions can not be forfeit due to dismissal. The only time when a pension (part of it) can be forfeit is if one is convicted of an offence which resulted in theft or embezzlement of company money.

What you've built up is safe and must be paid to you. But it's not clear what you've built up and you may want to check this out. In addition, you need to clarify the salary on which your pension will be calculated, as you've been unpaid for more three years.

Collymac

BobQ wrote: »

I should not worry unless you have a reason to be concerned. You say "The final preparation for my final salary pension is ongoing..." Have you received a statement of what your pension will be and what final salary its based on? If its what you expected I should not worry.

Also dismissal is a term that sounds bad but unless your job has a defined reuirement age at which its compulsory to retire, age discrimination means that you either have to resign or be dismissed in order to draw your pension.

Hope all works out for you

The pension statement has been received and and all has been signed, sealed and delivered.

Collymac

xylophone wrote: »

This seems an odd affair! I know that "hope springs eternal" etc but surely after three or four years of company medicals and no improvement, an ill-health pension should have been considered? The "fit to work and chosen not to" also seems rather strange. The implication seems to be that the company doctor thought that you were fit to work - if so, why did he not recommend to the employer that you should either resign or be dismissed? Is their some clause in employment law in Scotland that prevents this from happening or that allows unpaid sick leave at the employee's option between 60-65?

At all events, it would appear that arrangements to pay you a pension are in hand so that as a previous poster has suggested, the letter is a "form of words" that gets you legally off the books and onto pension?

My apologies for not making myself clear Xylophone.
I should have said the report was via my own GP and I never was asked to attend a company medical despite responding positively to this request.

Collymac

Debt_Free_Chick wrote: »

If your employment is terminated 7 weeks before your birthday, then the pension you have already built up is not at risk. It must be paid to you, in full, on your 65th birthday. You would, however, "lose" 7 weeks of pension as you would no longer be employed for that period.

However, it's not clear that you've been building up any pension whilst you've been on unpaid leave. Do you know whether you have, or not?

Pensions can not be forfeit due to dismissal. The only time when a pension (part of it) can be forfeit is if one is convicted of an offence which resulted in theft or embezzlement of company money.

What you've built up is safe and must be paid to you. But it's not clear what you've built up and you may want to check this out. In addition, you need to clarify the salary on which your pension will be calculated, as you've been unpaid for more three years.

Thank you D_F_C. This is reassuring and the company stopped paying into the pension after the 3 weeks sick pay but I wasn't to worried about that.

Collymac

spelling

mgdavid wrote: »

It depends on the particular pension scheme rules, which you need to obtain a copy of asap.
Usually final salary pensions are based on average salary of the last 3 working years (or similar), you need to understand how they will work yours out if they haven't paid you for 5 years. Talk to the Pension scheme administrators, don't forget they are supposed to be totally separate and independent from the company so will not be 'conspiring' with HR or managers etc.
I'd suggest you need to reply to, and repudiate, that letter pretty quick - but need professional advice first. Hopefully others more experienced and knowledgable will be along soon to help out.

I'm sorry mgdavid but I didn't realise I'd double posted and I am drafting a letter right now so thanks again.

rpc

I would call two groups:

The pension administrators, to find out what will happen to your pension and how that may be affected by your lack of salary

and

ACAS

Immediately reply to the letter stating that you are "unfit to work" and you have "never expressed a wish to leave employment with the company". Then call ACAS and explain what has gone on. It may make a BIG difference to your pension depending on whether you were fit to work, or unfit to work. You need to find out from ACAS what your options are if your employer does not change their tune.

Collymac

rpc wrote: »

I would call two groups:

The pension administrators, to find out what will happen to your pension and how that may be affected by your lack of salary

and

ACAS


Immediately reply to the letter stating that you are "unfit to work" and you have "never expressed a wish to leave employment with the company". Then call ACAS and explain what has gone on. It may make a BIG difference to your pension depending on whether you were fit to work, or unfit to work. You need to find out from ACAS what your options are if your employer does not change their tune.

Thanks for this advice rpc but unfortunately I've double posted this topic (see SAT. 9.24am) and I'm trying to find a way to close this one.

BobQ

Collymac wrote: »

The pension statement has been received and and all has been signed, sealed and delivered.

So was the PENSIONABLE PAY that was used to calculate the pension your pay in your last year of work? Higher? Lower?

Was the number of YEARS of contributions based on your service to 60? To 65(less 7 weeks)? More? Less?

Collymac

BobQ wrote: »

So was the PENSIONABLE PAY that was used to calculate the pension your pay in your last year of work? Higher? Lower?

Was the number of YEARS of contributions based on your service to 60? To 65(less 7 weeks)? More? Less?

It was based on an average of the previous 3 years and was slightly lower.
Initially the years of contributions was to 65 (although there was none between 60 to the present) but this may change as I've still to talk to HR about the dismissal.
Happily though, what I'm receiving (fingers crossed) is only a bit less than the forecast from 21 years ago and I have another smaller pension from my previous company that was bought over by the present one.

BobQ

Collymac wrote: »

It was based on an average of the previous 3 years and was slightly lower.
Initially the years of contributions was to 65 (although there was none between 60 to the present) but this may change as I've still to talk to HR about the dismissal.
Happily though, what I'm receiving (fingers crossed) is only a bit less than the forecast from 21 years ago and I have another smaller pension from my previous company that was bought over by the present one.

I'm glad this is resolving itself.

The three year average is probably in the scheme rules but you should check that too.