Legacy DB Pension Being Removed – What Are Our Options?

Oppenheimer

Have a stiff drink before you read my reply.

● Have others experienced an employer trying to remove a legacy DB scheme in similar circumstances?

Yes, experienced the same. Majority of employees in a DC scheme while minority still built up DB accrual and it had to end.

● Is it common for employers to offer compensation, and how is it usually assessed?

Not common. We asked for compensation and got nowhere.

● Should compensation reflect each individual’s projected pension loss rather than everyone receiving the same amount?

See above.

● Are there examples of employers agreeing alternative arrangements, such as enhanced DC contributions or transitional protections, instead of simply ending DB membership?

Probably very few.

● Are there any organisations, specialists or resources you would recommend that employees in this situation should speak to?

I would just make sure that meaningful and genuine consultation is carried out as per Pensions Regulator guidance i.e. 60 days plus.

This path has been travelled before by many other companies and so it is very common what they intend to do and the likely outcome.

I tried to challenge it by saying my contract of employment did not give them the absolute right to remove this benefit. Their legal advice accepted this. They still closed DB to future accrual.

I am just happy what I got out of it for so long.

When it closed to DB future accrual I resigned the next day as this was a key part of my remuneration package. A number of months later I joined the civil service building up DB again and recovered the salary level a couple of years later. They did me a favour!