Question about Morrisons Pension

seven-day-weekend

I read this (posted by Linton in 2012) about Morrisons Pension:

Its NOT a defined benefit scheme - the pot is used on retirement to purchase a pension at the then current market rates. To quote from the website:
"You will use your saving in the Retirement Saver to buy an annuity at age 65 (the Retirement Saver's normal retirement age). "
"The cost of buying any annuity is based on standard annuity rates at April 2012(This is just the assumption for the calculator). We have also assumed an annuity charge at retirement of £160. This amount would only be deducted from your benefits if you chose to use the Plan administrators' service for selecting an annuity at your retirement."

I understand that Government legislation now states that no-one is obliged to buy an annuity. What other options would there be?

Thanks in advance

hyubh

seven-day-weekend wrote: »

I read this (posted by Linton in 2012) about Morrisons Pension:

Its NOT a defined benefit scheme - the pot is used on retirement to purchase a pension at the then current market rates. To quote from the website:
"You will use your saving in the Retirement Saver to buy an annuity at age 65 (the Retirement Saver's normal retirement age). "
"The cost of buying any annuity is based on standard annuity rates at April 2012(This is just the assumption for the calculator). We have also assumed an annuity charge at retirement of £160. This amount would only be deducted from your benefits if you chose to use the Plan administrators' service for selecting an annuity at your retirement."

I understand that Government legislation now states that no-one is obliged to buy an annuity. What other options would there be?

While I would guess you're referring to the 'cash balance' Morrisons scheme (which, technically, actually is 'defined benefit', just in a rubbish way), there have been multiple, quite different Morrison schemes over time (*), so for starters, which one is it...?

(*) https://www.theguardian.com/business/2015/jan/31/morrisons-salary-linked-pension-union-usdaw-supermarket

seven-day-weekend

The Cash Balance one.

xylophone

There seems to be another in the offing.

https://www.union-news.co.uk/usdaw-disappointed-at-morrisons-pension-move/

There is virtually no information concerning the scheme (s) on the web - have you read the scheme booklet (s) for "options at retirement"?

Otherwise, check with the administrator(s).