DB Pension and Struggling Company

DaisyDo

My husband has a DB pension from when he worked at a large retailer. Does he have any options other than waiting for the Pension Protection Fund to pick up the pieces? This Pension is worth just over 12K per year. He has other Pensions but this one is probably the largest single pot. We are in our mid 40s.

Thanks

molerat

Is the company already in administration with talk of the pension going into the PPF? If so then you will no be able to move. If not there is a possibility that you could transfer out but you would need an IFA to sign it off and the transfer value may not be what you hoped for.

DaisyDo

Not in administation but looks like its entering into a CVA, but I think the PPF have some influence over the CVA going ahead or not.

Thank you.

xylophone

Is it the TAU pension scheme?

If so, links below may be of interest but you may have more up to date information?


https://www.theguardian.com/business/2017/dec/21/thousands-of-uk-toys-r-us-jobs-saved-after-last-minute-pension-deal

http://www.pensionsage.com/pa/Toys-R-Us-falls-into-administration-PPF-working-to-maximise-recovery-to-pension-scheme.php

https://help.toysrus.co.uk/support/solutions/articles/23000013553-what-happens-to-my-final-salary-pension-

The scheme seems to have entered into PPF assessment.

http://www.pensionprotectionfund.org.uk/FAQs/pages/details.aspx?itemID=41

Above dated 2005

http://www.thepensionsregulator.gov.uk/guidance/guidance-transfer-values.aspx#s1804

Schemes in a PPF assessment period
Schemes in a PPF assessment period are not normally permitted to pay transfer values, though there is no explicit exemption from the requirement to provide a CETV quotation (known as a statement of entitlement). However, unless the quotation is needed to comply with pension sharing legislation, it will usually be appropriate to inform inquiring members that as transfers are not permitted, the scheme will not be providing these quotations. We will not seek to take action where members have been kept informed.

Above dated 2008

molerat

House of Fraser ? https://www.ft.com/content/54688754-4eb6-11e8-a7a9-37318e776bab

DaisyDo

Yes House of Fraser.

xylophone

Yes House of Fraser.

According to FT


It is understood that House of Fraser has also approached the PPF for talks, ahead of a formal CVA proposal to be issued at the start of June.



The HoF has not yet entered any formal assessment period.

From PPF 2005 link in post above

When a scheme is being assessed or has entered the Pension Protection Fund can a scheme member transfer out?

When a scheme is in an assessment period, the trustees may only pay a transfer value where, before the assessment date, the member has requested and accepted the transfer value in writing and has designated a scheme willing to accept that transfer value.

Further, the trustees may only pay that transfer value if:
they are satisfied that to do so is consistent with the objective of ensuring protected liabilities do not exceed assets (or that where they do, the excess is kept to a minimum); and
they reduce the transfer payment to the extent necessary to ensure that it does not exceed the cost of securing the benefits which correspond to the compensation that would be payable if the Pension Protection Fund were to assume responsibility.
Where the assessment period has come to an end and the Pension Protection Fund has assumed responsibility for a scheme, the member will become entitled to compensation at normal pension age. Once the Pension Protection Fund has assumed responsibility for the scheme, a member would not be entitled to a transfer payment unless pensionable service was ended by the start of the assessment period and at that time the member had less than 3 months' pensionable service in the scheme.


See post 16 here https://forums.moneysavingexpert.com/discussion/5837795/transfer-dbs-to-dcs

If your husband is contemplating a transfer out, it would appear that he would need to get on with arrangements as soon as possible?

DaisyDo

Thank you for this, we will look into it. We have no idea if it's a good idea to transfer or not, have always been advised to leave it alone!