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Works Pension
davejjt
Posts: 22 Forumite
My wife's employer ( Morrison's) is wanting to change the pension scheme. How do you opt out of the scheme and set up your own pension fund. Who are the best companies to go with?.
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Why does she wish to do this? Presumably Morrisons pay a contribution to the pension. If so why would she want to turn it down? Would she turn down part of her wages?
As to the mechanics: you just tell your employer you want to opt out. There should be a process or form for this, ask the empoyer's pensions people. Then (or as well) one can set up a personal pension either directly or via an advisor. As to which is best, it depends on how much money she wants to contribute and what she wants. Your question is a bit like asking what is the best car to buy. If she wants something basic, any of the main suppliers would be able to provide a moderately reasonable product.0 -
Would it be moving onto the Morrison's Retirement Saver Scheme?
There was a thread back in 2012:
https://forums.moneysavingexpert.com/discussion/4203979/new-morrisons-pension#topofpage
Linton, you were a contributor (I wouldn't expect anyone to remember a thread from 2012 though).
Looks less than straightforward decision.0 -
How do you opt out of the scheme and set up your own pension fund.
You opt out and set up your own pension. However, you would become an opt out and many providers will not accept business from opt outs without an IFA signing off on it.
It would also be a daft thing to do as who would want to turn down free money to get less?
The Morrisons workplace scheme.Who are the best companies to go with?.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
My wife's employer ( Morrison's) is wanting to change the pension scheme. How do you opt out of the scheme and set up your own pension fund. Who are the best companies to go with?.
The sentence you are looking for is 'cutting off nose to spite face'. Why give up free money from the employer?0 -
My wife's employer ( Morrison's) is wanting to change the pension scheme. How do you opt out of the scheme and set up your own pension fund. Who are the best companies to go with?.The sentence you are looking for is 'cutting off nose to spite face'. Why give up free money from the employer?
This thread has lead my to looking at the Morrison's scheme (for no other reason than it's too hot to sleep). Apparently it's a 'cash balance' scheme which perhaps makes things a little more complicated as it seems that Morrison's contributions are not a straight contribution, rather they 'make up' the pot to a certain level. There is also a cap on annual revaluation of 2.5%.
The thread I linked to earlier seemed to generate a lot of discussion around the pros and cons of the scheme.0 -
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About the 2012 thread: does the OP's post suggest that Morrison's wishes to make further changes to its scheme? Might that make the 2012 thread obsolete?
Best idea is to look at current info on Morrisons' website: https://www.mymorrisonsretirementsaver.co.uk/on-our-radar/on-our-radar/faqs
There's a modeller OP can use to work out how the scheme compares to anything his wife might join if she opts out. Quite why anyone would opt out of a cash balance scheme is beyond me...Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Why does she wish to do this? Presumably Morrisons pay a contribution to the pension. If so why would she want to turn it down? Would she turn down part of her wages?
As to the mechanics: you just tell your employer you want to opt out. There should be a process or form for this, ask the empoyer's pensions people. Then (or as well) one can set up a personal pension either directly or via an advisor. As to which is best, it depends on how much money she wants to contribute and what she wants. Your question is a bit like asking what is the best car to buy. If she wants something basic, any of the main suppliers would be able to provide a moderately reasonable product.
Morrison's are wanting to pay less and for employees to pay more.0 -
Morrison's are wanting to pay less and for employees to pay more.
Perhaps, one would need to see the details. But in most cases any employer payment is better than none. It could be more sensible to pay sufficient into the scheme to get the max employer contribution with any further pension contributions going into a personal pension. There is no problem with contributing to more than one pension.0 -
Morrison's are wanting to pay less and for employees to pay more.
Yes, a sad decision, but I still have to think that Morrisions paying less than they do now would still be better than a private arrangement where Morrisons will pay nothing at all (which is good for Morrisons, but not the wife).
It may be an idea to have a private second pension for top up, and then contribute the bare minimum to get the max employer's contribution out of the company one, if you are worried about having all your eggs in a fragile basket.(Although I could be wrong, I often am.)0
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