can anyone explain this to me?

elantan

Hi all,

hubby has a company pension with his empolyer, today he recieved a letter from his union, part of which was about his pension, below is the paragraph


While ( company) has recieved reassurances on the current pension deficit( i.e. the value of the pension scheme invesments compared with the values of its liabilities), it is expected to absorb upward pressure on any new pension deficits that arise ( this principle also relates to ongoing contributions for future service) importantly ( regulatory body) will bench mark efficiency of ( companys) final salary pension scheme agaisnt other ( companies in the same field)


i have taken out the name of his company and his regulatory body so as not to give too much info away, however i am sure there will be a few people that will recognise the letter

the way i understand it is the company have agreed to meet the current pension provision but that in the future this may change and he will be brought in line with other companies within his field of work, his pension is currently better than those within his field of work ( as far as we are aware)

do i have this right? or totally wrong ? am i missing anything ?

can anyone explain to me in a very easy to understand way what exactly this means ?


thanks as always

el

quotememiserable

It says the company will endeavour to make good the current deficit and hope to manage any future increase in defecit. In fact they they are on the hook for the current defecit anyway because its a committment, plus the pensions regulator will require them to do a full valuation every three years and put in place a recovery plan.
The only way they can pin the defecit is to close the scheme to new accrual, but this letter says its their intention to continue to fund new deficits, so effectively it says they intend to keep the scheme open. Which is great news for active members.

elantan

Thank Qm ... i obvioulsy read it wrong ... no surprise there then really lol