final salary pension being closed and deferred- what are my rights?

atush

Don't opt out of the new pension. Getting 8% of your salary into the new pension (plus whatever you put plus tax relief) is better than a kick up the backside.

Dont let your disappointment (don't be angry as the FS pensions are so expensive a company could go bankrupt funding them and then were would you be at 48 with no job?) colour your decision on this. 8% employers contribution is much higher than the amt they have to put in.

stevet_2

thanks for all the answers so far i suppose i have until march to get my head round this

i still believe the company have done this for no other reason than to stitch us up as i have said the plan is fine and still in surplus

the union have already looked at the possibility of strike action over this, we will see

ajbell

My deferred final salary pension has almost doubled in value since it was deferred 11 years ago due to annual increases of 5% while inflation has stayed well below that. So do not despair it will continue to grow.

stevet_2

thats good to hear thanks

alanfp

I feel sorry for you.

I bet you were never told that the company could do this when they offered you a job and invited you to join the pension scheme 24 yrs ago.

They may even have used the word 'guaranteed'.

But my understanding is that there is no recourse for you, other than under the employee relations route (industrial action, possibly?). Hopefully you will get good info from the unions (who have been through this probably hundreds of times now) as to what options are open to you and what your chances of success are.

The annoying thing is that when times are good, the employers have (generally) reduced their contributions dramatically, often taking contribution holidays, saying that (as was always intended) they would make up any shortfall in bad times. Well it turns out they were lying - when the bad times come, they just take their ball away and stop playing the game.

somethingcorporate

alanfp wrote: »

The annoying thing is that when times are good, the employers have (generally) reduced their contributions dramatically, often taking contribution holidays, saying that (as was always intended) they would make up any shortfall in bad times. Well it turns out they were lying - when the bad times come, they just take their ball away and stop playing the game.

Is that really true? Employers have suggested they'd put more in when times were hard? Makes no sense - they should keep them topped up and put extra in when the times are good so they don't get a kickin when the times are bad.

You are right though, they have just gone to play a different game. They are completely unsustainable though, the costs compared to DC schemes are astronomical.

xylophone

With regard to the NI, did you see the link on salary sacrifice?

opinions4u

You can be angry and upset. You can strike. You can refuse to join the new scheme.

It will all be futile. It will happen.

So don't strike. It will simply cost you more. If the new scheme has your employer matching contributions, exploit them to their full potential. And seek out an understanding of what early retirement options remain and how much pension you will get at 50, 55 and each extra year worked beyond that.

The way the personal allowance is increasing may actually make early retirement worthwhile at some point.

kidmugsy

[QUOTE=stevet;56480849

the union have already looked at the possibility of strike action over this, we will see[/QUOTE]

This is essentially a pay cut - nobody welcomes a pay cut but if you feel badly enough about it you should find yourself another job. What you shouldn't do is cut off your nose to spite your face. While you remain with that employer pay enough into the new scheme to bag the 8% employer contribution.

Good luck with your union - mine was no bloody good about pensions, and rarely much good about anything else. But some of the officers got safe Labour seats or peerages, so that was all right then.

stevet_2

alanfp wrote: »

I feel sorry for you.

I bet you were never told that the company could do this when they offered you a job and invited you to join the pension scheme 24 yrs ago.

They may even have used the word 'guaranteed'.

But my understanding is that there is no recourse for you, other than under the employee relations route (industrial action, possibly?). Hopefully you will get good info from the unions (who have been through this probably hundreds of times now) as to what options are open to you and what your chances of success are.

The annoying thing is that when times are good, the employers have (generally) reduced their contributions dramatically, often taking contribution holidays, saying that (as was always intended) they would make up any shortfall in bad times. Well it turns out they were lying - when the bad times come, they just take their ball away and stop playing the game.

exactly how myself and my mates at work feel

just to say the company had a 15yr payment holiday and took 26m out of the fund for investment in new plant

we have meetings with a trustee on monday and the union have a meeting next week also

thanks for all your posts and advice