Final Salary Pension / Comapny Takeover

sootyabby

Hello

My company was taken over by one of the major banks c18 months ago, and I would be grateful for any advice re the following situation I am now in.

I was in the final salary scheme and had been for c17 years. this scheme was closed to new members but there were about 70 longer servers still in the final salary scheme.

I had assumed we would b etransferrred into the banks final salary scheme, even though that was closed to new members, so that our position was protected following the takeover.

However, this was not the case and we are now no longer in a final salary scheme. We have taken this up with the union, but are not really making any progress.

Has any body been in a similar situation, or can offer any advice how we can tackle this.......or is it a lost cause?

many thanks,
Paul.

IWasWondering...

They could have kept the existing one going. I know mine didn't change when we were bought by another company.
Have you spoken to the trustees of your FS pension scheme?

chesky369

Are they offering a different kind of scheme or nothing at all.

sootyabby

Hi & thanks for your replies

Yes they do offer a money purchase scheme and will match any contributions made. However, the main issue is that a number of us have gone from being in a non contributory final salary scheme, to a contributory money purchase scheme.

regards

chesky369

It's happening all over I am afraid. My own final salary scheme was terminated nearly a year ago and a salary sacrifice scheme initiated. There won't be anything you can do about it, so the thing is to be positive, ask for a statement of what you will be entitled to (usually with a 3% increase per annum). It will be sitting there for you when you retire - now you have to make sure you get the best possible range of investments for your new scheme.

chesky369

PS if they offer to buy you out, be very very careful - it will seem like a great deal at first but it won't be in your interests in the long run.

Peelerfart

If this was a TUPE Transfer then pensions are not covered and these nice people who are your new employers are under no obligation to provide a final salary scheme.

chesky369

No employer is obliged to provide a final salary scheme at all, even those who have done so until now. Legally they can terminate them any time at all.