Possible pension transfer

talexuser

Wayward_Son wrote: »

My understanding is; the existing scheme is currently fully funded however the total value of the pension scheme liability is much larger than the TOTAL WORTH of TRW itself. This means that should there be a shortfall in the future the company may be unable to fund it which could mean administration so TRW are looking to reduce their liability by offering ETV as an incentive for people to transfer out of the scheme

Not quite. The pension is 103% funded at the moment with assets of around £3500 million. Yes, TRW UK had assets of around £100 million a couple of years ago, but the pension is underwritten by TRW Automotive (US Parent) which has just been sold to ZF Friedrichshafen AG of Germany for $12 billion who inherit the pensions. The company now has worldwide annual revenue of estimated $41 billion being the second largest automotive parts company in the world after Bosch. Thus the spectre of default problems recedes.

I am interested in your news of increased deadlines due to demand. I refused the offer since preferred to keep inflation increases rather than give them up for a one off increase with no future increases. If enough people have taken up the offer the remainders may well be sold to an insurance company at their existing conditions, ie with inflation increases, and this was my preferred outcome, given the insurance option has greater regulatory stability. Even if this doesn't happen the smaller remaining pension should be chicken feed to the new underwriting company.

Naturally this is no use to anyone else since personal circumstances are different and that is why the company paid for individual independent financial advice from Chase De Vere for everyone with an offer.

talexuser

According to news 37% accepted the offer getting an enhanced pension now in return for no more increases, and a further number who refused (including me) will be transferred under our existing terms and conditions, ie with the inflation increases. So TRW offloaded around 80% of their pension liabilities before being taken over.