Final Salary Pension Advice

Discussion in 'Armed Forces Pension Scheme' started by MightyGem, Nov 6, 2007.

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  1. I left the Army ten years ago and have worked for the same company ever since. Six years ago I was invited to join the parent company's final salary scheme, which I did.

    Earlier this year, the parent company sold my company, which meant I had to leave the final salary scheme. I now have a deferred pension of £5300(plus any increments) at the age of 65(12 years). Not bad for six years membership!!

    I have looked at transferring this to my current pension. The transfer value is £70000 and the pension company's figures give a projected pension of £3500 at minimum growth to a total pot of £109000. Clearly not as good.

    My concern is what would happen to the final salary pension if the scheme was wound up/closed/went bust.

    Is there some sort of Government protection system for these schemes?
  2. You are probably thinking of the recent fuss about various pensions schemes which now have some element of guarantee under the Pension Protection Fund- BUT, don't cheer yet. The following website may be of assistance, Pensions Advisory Service.

    As you are not yet of retirement age(?), you should get 90% of your anticipated pension, but it is capped and cost of living increases are not guaranteed over 2.5%. How this will pan out as more final salary schemes fail is hard to predict, as I can imagine that the Treasury will not add more money to the pot and the levy on schemes will be highly unpopular with both employers and pensioners.

    I cannot give you further specifics and would suggest that you talk to an IFA, (slightly self-serving as I am one), ideally a pensions specialist. If desperate, PM me.
  3. Many thanks, Jeremy.