Existing pensioners: possible corporate break-up finance sector

Annemos

https://news.sky.com/story/ey-to-brief-uk-partners-on-plans-for-80bn-global-break-up-12643126

Good morning everyone. 

Has anybody ever experienced a situation like this? 

A partnership would potentially break up into two separate parts..... A: a Consulting Company listed on a Stock Market    and    B:  a Partnership. 


I believe our pensions (current pensioners and people not yet retired) are all funded at the moment by the firm (in our own countries)
. 

What typically happens to people who are already retired in such a break-up, in the UK?


1) Would they perhaps put the pensioners who have already retired into the Partnership arm, because we retired when it was still a partnership.


2a) Or would A and B somehow split the existing retired pensioners between them? 

2b) How would they sort out former employees according to whether they worked in audit or consulting, anyway? Some might have done both functions! 


Thanks everyone for any comments.

(Life likes to throw new uncertainties at us!)

Linton

I have no knowledge of the EY pension scheme but in general....

Occupational pensions in the UK are held by trust-based entities separate from the employer.  The employer may disappear but the pension scheme can carry on regardless.
 
I assume the scheme is DB ("final salary" or similar).  If it is DC then there should be no issue, the pot is secure and could be transferred elsewhere if appropriate.   DB pensions in payment are underwritten by the Pension Protection Fund and will continue to be paid if the pension scheme has insufficient money and the employer is unable to contribute.  DB pensions not in payment will be 90% covered with some restrictions.

Annemos

Thank you very much, Linton.

I have never quite understood that trust thing. Thank you for explaining that it is actually independent of the old employer. 

Mine was a DB-Final Salary scheme. 

I hope I can rest easier. 

Thanks again.