My employer is taking away my WYPF DB pension and moving me to a DC pension scheme....

CDunn911

...... I am substantially worse off but it is also difficult to present a reasonable compensation offer. Has anyone been through anything similar or can anyone offer advice or know someone who can?

Thanks

bluebirdy

Are you a member of a union? If so, they should be able to advise and support you. 

xylophone

My employer is taking away my WYPF DB pension and moving me to a DC pension scheme....

Not you alone presumably?

What are the circumstances?

Oppenheimer

After decades of loyal service to my last employer, they closed the defined benefit pension (with no compensation) and moved me over to a defined contribution scheme.  I resigned the day after this took affect.  I had a period off to recharge my batteries and then joined the civil service (at a much lower salary) to have access to a defined benefit pension again.

I am more than happy to have a lower monthly pay now to ensure I have a guaranteed pension when I retire.

Big gamble, but paid off for me and now very happy.

Hoenir

The Pension Scheme trustees are ultimately responsble for the scheme. Is there a material level of underfunding? 

Oppenheimer

This might help but honestly best to focus your efforts on improving the Defined Contribution offering or look for another job.  

Not able to post hyperlinks but please Google The Pensions Regulator and Closing a pension scheme.  Employers need to carry out meaningful consultation.

Silvertabby

Hoenir said:

The Pension Scheme trustees are ultimately responsble for the scheme. Is there a material level of underfunding? 

No.  The issue will be the employer contribution, which will be anything up to 30% of the employee's salary.  Not the first time that a small employer has decided that remaining in the LGPS is unaffordable, and sadly won't be the last.

Albermarle

CDunn911 said:

...... I am substantially worse off but it is also difficult to present a reasonable compensation offer. Has anyone been through anything similar or can anyone offer advice or know someone who can?

Thanks

Over the last decade or so this has happened to Millions of Private sector workers.
Normally you would expect the DC scheme to be substantially worse as the employer will be adding a lot less, which is of course why they want to change.
To be fair to some employers, the cost of their DB schemes was crippling them. 

The minimum legal contribution to a DC scheme is 5% from you and 3% from the employer ( assuming you do not opt out) . For a DB scheme an employer could be adding as much as 25%.

You would hope that an employer contribution to be significantly above the minimum as part compensation- maybe around 10%?
Plus maybe some one off payment ?

hyubh

Hoenir said:

The Pension Scheme trustees are ultimately responsble for the scheme. Is there a material level of underfunding? 

Given the reference to 'WYPF', I would guess this is an LGPS admission body taking advantage of the recent-ish introduction of 'deferred employer' status in the scheme regs and/or recent improved funding levels in the scheme...

hyubh

CDunn911 said:

...... I am substantially worse off but it is also difficult to present a reasonable compensation offer. Has anyone been through anything similar or can anyone offer advice or know someone who can?

If WYPF = West Yorks Pension Fund, asking for the old employer rate as a DC contribution rate might be a reasonable starter for ten (https://www.wypf.org.uk/employers/employer-contribution-rates/).

Brie

I presume that the DB scheme is closing and you will retain what benefits you have earned in that so far.  That has happened to numerous occupational schemes.  If you are saying that they are moving your entire accrued benefit from the DB to a DC scheme I would wonder how that has been allowed given that transfers like that are not beneficial and almost never are allowed on an individual basis.