Cadent DB scheme

Nimb

As a newbie I can’t post links but there is an article in the guardian where the GMB union claims that Cadent Gas wants to ‘shutter’ their DB scheme that was closed to new members 20 years ago.

I always thought that an employer legally had to keep such schemes open and financed (as long as the company was in existence).

As a member of a closed DB scheme it got me wondering about my own if the same was to happen. Would my pot be moved to a DC pension and how would my pot be calculated ?

Marcon

Nimb said:

As a newbie I can’t post links but there is an article in the guardian where the GMB union claims that Cadent Gas wants to ‘shutter’ their DB scheme that was closed to new members 20 years ago.

1. I always thought that an employer legally had to keep such schemes open and financed (as long as the company was in existence).

As a member of a closed DB scheme it got me wondering about my own if the same was to happen. 2. Would my pot be moved to a DC pension and how would my pot be calculated ?

1. No. 
2. No (so relax!). The benefits would ultimately be 'bought out', which means an insurance company would be paid sufficient cash to take over the scheme and pay benefits of equal value to those promised in the rules of the schemes. In practice, 'equal value' usually means exactly the same benefits, although most discretions (such as bumper increases in years of high inflation) are stripped out during the buy out process.

Just looked at what the GMB says about Cadent - they are opposing closing the scheme to future accrual (ie build up of further benefits for existing active members).

C_Mababejive

What does High Court ruling mean for the BBC and other DB pension schemes? - Defined Benefit - Pensions Expert (pensions-expert.com)