What happens to pension funds

50Twuncle

I am a member of a pension fund - that I am currentky receiving a pension from of £800 pa
I have received a notification that the scheme is no longer accepting new members

But also the net assets of the pension are extremely good (I mean EXTREMELY) - like £250k per remaining member !!

What would happen to the assets of the scheme - should it remain the same - when the last remaining pensioner is left alive ?

hyubh

50Twuncle wrote: »

I am a member of a pension fund - that I am currentky receiving a pension from of £800 pa

Presumably you were a member of the scheme for not very long to have a pension of under £1K a year...?

I have received a notification that the scheme is no longer accepting new members But also the net assets of the pension are extremely good (I mean EXTREMELY) - like £250k per remaining member !!

I would imagine many/most pensioners have a pension of more than £800 pa. Either way, if the funding position really is 'excellent', the chances are the sponsoring employer is looking for a 'buy out' with an insurer and saying goodbye to the scheme for good.

What would happen to the assets of the scheme - should it remain the same - when the last remaining pensioner is left alive ?

A rather hypothetical question I would imagine, however the straight answer (assuming no buy out along the way) would be back to the sponsoring employer, i.e. the organisation responsible for funding the pensions in the first place.

50Twuncle

hyubh wrote: »

Presumably you were a member of the scheme for not very long to have a pension of under £1K a year...?

I would imagine many/most pensioners have a pension of more than £800 pa. Either way, if the funding position really is 'excellent', the chances are the sponsoring employer is looking for a 'buy out' with an insurer and saying goodbye to the scheme for good.



A rather hypothetical question I would imagine, however the straight answer (assuming no buy out along the way) would be back to the sponsoring employer, i.e. the organisation responsible for funding the pensions in the first place.

3 years at which point - I was medically retired at the age of 45 - 10 years ago
I queried the amount - but it was reduced for early payment reasons !
The funds are approx £1.5 billion net
The original company has been closed about 14 years ago...I was transferred along with the contract
it is a complex situation involving TUPE

Marcon

50Twuncle wrote: »

3 years at which point - I was medically retired at the age of 45 - 10 years ago
I queried the amount - but it was reduced for early payment reasons !
The funds are approx £1.5 billion net
The original company has been closed about 14 years ago...I was transferred along with the contract
it is a complex situation involving TUPE

Not sure what you mean by 'net' funds? What is the funding level of the scheme, both on an ongoing and a discontinuance basis - info will be in the Summary Funding Statement you receive each year.

The original company will have been replaced by another company, known in pensions terminology as 'the principal employer'. If the scheme winds up and is 'bought out' with an insurer, that will sop up a huge slug of any 'surplus'. Anything left over after all costs are met will be distributed according to the terms of the Trust Deed, which may or may not provide for benefit enhancements for members and then the return of any true surplus to the Principal Employer.