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Can a company sack you for not accepting a pension change

caslad81
Posts: 4 Newbie

Hi all,
What would be an employees right be if they had worked for a company for 10 years with a final salary pension, then after a consultation the company changed said pension to a cash builder pension which is worth a fraction of the return? The employee then refused to sign the contract and was then threatened with a termination of employment.
Thanks
What would be an employees right be if they had worked for a company for 10 years with a final salary pension, then after a consultation the company changed said pension to a cash builder pension which is worth a fraction of the return? The employee then refused to sign the contract and was then threatened with a termination of employment.
Thanks
0
Comments
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Employers have the right to change pension scheme arrangements. Most employers have now dropped final salary scheme arrangements due to the high cost. The contributions required from employers to such schemes are so great that, in some cases, they threaten the future of the company.
As for a money purchase type of scheme, employees can always opt out of a pension. Although if an employer is contributing, it's usually a pretty silly thing to do. Some would say it's even sillier to lose your job over it.0 -
Or they could just give you no pension if you opt out? That is an option if you dont like the new pension, but it would be a bad choice.
The facts of the matter are, that you have a contract. but employment contracts re pension can be changed, although the employees usually get a consultation period to discuss. And are usually replaced with something that is better than the average company pension.
And another fact is, that FS pensions are a dying breed and there are very few ones left in the private sector. And they are largely unaffordable for companies, some who have nearly or actually folded under the weight of them.
What are the terms of the new pension? How much is the employer going to put in? Would you rather have a good DC pension, or no job (ie your company fails)?
Generally speaking you cant make them give you a FS pension, and if you like your job i'd get the max from them in the new pension.0 -
This is a multi billion pound company, the question was asked because the pension will decrease from 20,000 per annum to 7 at retirement age which is madsive. I did not realise a company could sack you if you refused a pension change.0
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If they need you to sign a contract then it is optional, that is what contracts do on the whole, sign away rights to things.
I would speak with a union rep or join a union.I do Contracts, all day every day.0 -
If you are a union member you will be able to get legal advice on this by calling the member helpline or via your local rep.0
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This is a multi billion pound company, the question was asked because the pension will decrease from 20,000 per annum to 7 at retirement age which is madsive. I did not realise a company could sack you if you refused a pension change.
20K to 7K?
What do you base this on? A projection if you stayed int he FS pension that whole working life til scheme age? You need to give where figures come from if you want good opinions. And do say what the replacement scheme offers as you have not bothered to do so?
If you have no spouse, and are of ill health when you retire, sometimes a non FS pension can be better?0 -
Marktheshark wrote: »I would speak with a union rep or join a union.
Worse than useless, in my experience.Free the dunston one next time too.0 -
Worse than useless, in my experience.
depends on whom the union recognised is.
I relied on my union as the best insurance policy I ever paid into when in the rail industry.
It was also the only policy I ever got any value out of when I needed them.
A toothless union however should be viewed as a convenient and specific CAB and nothing more however, although 'worse than useless'? I wouldn't agree in any circumstance.Unless specifically stated all posts by me are my own considered opinion.
If you don't like my opinion feel free to respond with your own.0 -
Timbo, you aren't the OP
Let them state the case that they have- stat your own thread if you have a problem.
A union will help in the consultation stage here, hopefully pushing up the employers contribs. otherwise, unhelpful to mention a union, if there a- isn't one, or B- too late to help0
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