What is a defined contributions pension scheme?

Daniel54

atush wrote: »

What is important is, what kind of pensions are all 3 (ie money purchase/DC or DB/FS). It seems at least 2 out of 3 are DC. These are covered by the 'new' rules.

Then another important thing is, do you have the last few statements? How have the pensions performed ( ie grown)? What funds are they invested in (or are they with profits)? If they aren't performing, look to see if they have imp guarantees such a GAR. If they don't, and aren't performing, transfer them elsewhere. And perhaps put more into pensions.
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I agree with Atush.Take the time to establish what you have, what terms and conditions apply ( including any guarantees) and how they have performed.

If you don't like what you see,then move them.But informing yourself first would seem to be a sensible step

usignuolo

I thought that zombie funds were those closed to new business.


It does not help lay persons like me understanding how to find out what my plans cover when organisations like the FT and the FCA routinely but it seems, incorrectly, refer to zombie funds as funds closed to new business like Abbey Life.


Abbey Life itself says they are closed to new business and so cannot offer advice or comment on the policies you hold. The independent advisor who sold me the policies has long since retired overseas. I find the paperwork provided with the AL plans virtually unintelligible.


For example a brochure entitled Abbey Life Directors and Executives Retirement Plan, starts with Part 1: 5 pages of definition.


Then Part 2: Constitution and Provision of Benefits says: The plan has been established under irrevocable trusts which shall be governed by the declaration of the Trust and the Rules and the Plan shall be administered in accordance with the Declaration of Trust and Rules.


Part 4 Contributions says: The cost of each Members benefits shall be met by the employer except to the extent that contributions are required from the Member.


Part 5: (1)Retirement Benefits says : All Benefits calculated in accordance with this Rule shall be subject to the limitation in Rule 15.


Part 15 starts: Throughout this Rule references to the maximum amount of benefit that may be payable shall be deemed to include any benefit payable in like circumstances.


There are pages and pages of this all written in similar vein. How am I supposed to understand it.?


I did ring Abbey Life to ask for some assistance in working out what some of it meant, and the person on the phone said the company was closed for new business and so unable to offer any assistance as it might be construed as advice which could not be offered as it was closed to new business.


I did seek advice from an independent advisor but all he seemed to want to do was sell me yet another policy and when it arrived the costs had increased by 40% from our discussions ten days earlier.

atush

Stop looking at the rules for now, and look at the statements.

Are they with profits or invested in funds? Which funds? How have they performed (ie % increase/decrease) these last few years?

What are the total charges each year as a %?

Are there any guarantees attached? (they can tell you this if you ask).