Get out of Motorola DB scheme?

M

Marianne

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An acquaintance worked for Motorola until 1998 and has a deferred pension entitlement in their DB scheme. Now that they're closing up shop here, I presume the DB scheme will be wound up this year.

I wonder is there any benefit in his taking a transfer value now rather than waiting until the formal wind-up of the scheme commences?

Just looking for opinions - I know there's an element of speculation involved.

Thanks.
 
It is unlikely that you could anticipate that additional value would be received by leaving now. For one, any surplus existing might be missed out on where this is distributed to members.

In addition, the basis used to calculate transfer values will increase on 1 May so the minimum amount payable will increase. Getting this amount is subject to the scheme being appropriately funded, but Motorola may not wish to walk away from unfunded pension liabilities from a PR / HR perspective.

It should be possible to identify the scheme funding positoin from the most recent Scheme Report and Accounts / valuation report?
 
Thanks Azriel. That's very helpful.

...the basis used to calculate transfer values will increase on 1 May so the minimum amount payable will increase...
Click to expand...

Can you expand on that please?
 
The basis used to calculate Transfer Values is set by the Society of Actuaries in Ireland, and this basis is due to change wef 1 May.

The effect will be to increase transfer values payable, which will be the amounts payable on the wind-up of the scheme or on transfer out.
 
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