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Pension Warrior - Help Required


Northerngimp
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Do we have any pension experts in the house?   :harry:

 

Just been told that out final pension salary is to be stopped!

 

Advise needed

If you signed up for this scheme before they changed it I don't think they can stop it.  Where I work I got in a bit late so I don't get a final salary pension, I get the standard you pay this in, we pay this in bollocks but those who were here before still get Final Salary Pension.

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Do we have any pension experts in the house?   :harry:

 

Just been told that out final pension salary is to be stopped!

 

Advise needed

If you signed up for this scheme before they changed it I don't think they can stop it.  Where I work I got in a bit late so I don't get a final salary pension, I get the standard you pay this in, we pay this in bollocks but those who were here before still get Final Salary Pension.

 

I'll be 10 years of contributions come april next year when the cease the scheme.

 

I dont have a scooby doo!

 

 

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Found this

 

"Although the new legislation makes it more likely that pension scheme members will receive their promised benefits, the price could be more scheme closures as companies are forced to commit cash to funding their deficits instead of paying benefits for current employees,"

 

Check this out

 

http://www.opsi.gov.uk/Acts/acts2007/ukpga_20070022_en_1

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FUUUUUUUUUUUUUUUU

 

I just dont know !

 

I'm f***ing clueless when it comes to pensions.

From what Burnip said if they've closed it to existing members you be screwed, ring up citizens advice, or call your HR department.

 

Yup they are closing it in april 2010, no more contributions.

 

They will create a new scheme which is fair enough but it wont be a final salary scheme.

 

 

 

 

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The proposal itself (as it stands)

The company is due to release the detail of their proposal to employees this week, which will no doubt show it in much more detail than is possible here.

The main points of the proposal as explained to your reps were:

 

The company is proposing to freeze the current scheme so that current members become deferred members in the scheme. The proposal is that members can either elect to join the current money purchase scheme, or to join what is known as a GPP (Group Personal Pension) scheme.  This is a type of Money Purchase / Defined Contribution scheme, where members pay into a pot and will get a pension based upon the value that is in the pot at retirement and the state of the stock market at that time.  Hence it is a scheme where the company knows what it will cost them, but the employees have little idea what we might get as a pension until the time we come to retire, as it is  we employees who take all the risk of stock market performance on the value of our pensions

 

***are proposing an arrangement that the company puts in a maximum of 8% per year as long as an employee pays in at least 4%, and will double employee contributions below that figure.  This stands in stark contrast to the 19% for past service and 7.8% for future service, per year that is currently going into the main DB scheme and 19.5% to the 2005 Pension Scheme, from the company.

 

The company suggests that it will make sufficient payments into the DB scheme it is closing to ensure it can meet the scheme’s liabilities.  It will also have a separate amount of money which could mean a company contribution of 12% per year for the first 2 years, but the details of this are yet to be discussed.

 

The company has stated that the proposed changes to pensions are not intended to affect redundancy or early retirement terms that some people have as part of TUPE arrangements.  How it proposes to guarantee or fund these arrangements has yet to be defined.

 

UNISON believes in ensuring employers provide decent pensions to all employees – we see pensions as a fundamental part of employees remuneration – as deferred salary.  What is clear is that *** are playing the long game in this – they are looking to make huge reductions in the UK salary bill.  Consequently our campaigns will always seek to improve pension arrangements for all our members, not just those currently on the DB scheme.

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