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PPF intervention in Toys R Us

What does this event tell us about the future of Company Pension schemes?
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Comments

  • AlanP_2
    AlanP_2 Posts: 3,540 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    iro wrote: »
    What does this event tell us about the future of Company Pension schemes?

    Not a lot I would say.

    Some companies with DB schemes will always go bust over time, some won't.

    It tells us more, in my opinion, about how multinationals "treat" their indivdual country subsidiaries and attempt to maximise shareholder returns at somebody else's expense.
  • AlanP wrote: »
    Not a lot I would say.

    Some companies with DB schemes will always go bust over time, some won't.

    It tells us more, in my opinion, about how multinationals "treat" their indivdual country subsidiaries and attempt to maximise shareholder returns at somebody else's expense.

    The British Steel Pension Scheme was winning awards for being the best run scheme in Europe until about five minutes before it went t!ts up....
  • AlanP_2
    AlanP_2 Posts: 3,540 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Trumpeter wrote: »
    The British Steel Pension Scheme was winning awards for being the best run scheme in Europe until about five minutes before it went t!ts up....

    OK, but what actually went t!ts up was the employer wasn't it? If they had still been trading, at a profitable level, would the pension scheme have ended up where it is now?
  • iro
    iro Posts: 1,237 Forumite
    Seems to me the concept of 'gold standard' is becoming tarnished
  • JoeCrystal
    JoeCrystal Posts: 3,389 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    iro wrote: »
    Seems to me the concept of 'gold standard' is becoming tarnished

    It is still gold standard compared to anything else which really say about the status of the pension schemes for the rest of the people not in such schemes.
  • iro
    iro Posts: 1,237 Forumite
    at 50x really?
  • JoeCrystal
    JoeCrystal Posts: 3,389 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    iro wrote: »
    at 50x really?

    What is your point with 50x? You mean the transfer value or something?
  • iro
    iro Posts: 1,237 Forumite
    Yes.................
  • JoeCrystal
    JoeCrystal Posts: 3,389 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 21 December 2017 at 9:44PM
    iro wrote: »
    Yes.................

    I certainly won't go for 50x or any amount since I value the guaranteed annual pension far higher. If I was offered a choice between £10,000 index-linked annual pension for life once I reach the retirement age or £500,000 SIPP then I would go for index-linked pension. Especially if the gold standard pension scheme also includes ill-health retirement, death in service benefit and so on. For something that cost a pittance for the employee. Yes, please. ;):D Speaking as someone who only have a DC pension scheme with nominal employer's contribution so I am contributing 25% of the salary into my own pension scheme (and yet I still don't think that is enough) in some small hope of better retirement.

    Of course, as some have said already, the period when it is reasonable to transfer out of a DB pension scheme is going to be short. We are in the golden age at the moment when the transfer value is so sky high. Just as long the people who transferred the amount out don't complain if it doesn't pan out for them.
  • westv
    westv Posts: 6,516 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Connected to poorly functioning pension funds, do Bradstock Agreements still exist or did they go out of favour a long time ago?
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