# Pension gone bust what to do



## spalpeeno (17 Sep 2010)

Hi first time posting re pension: company tells us DB pension in the red. No details as to how much in the you know what but early in the year it requested a 'holiday' and asked us to put in extra 5%.We did! They said they'd put a 'considerable' sum in also. They didn't! Now they say they want 10% wage cut and to halve our pension on retirement. As it is, pension is two thirds of what they call 'pensionable' salary - which is far less than actual salary. They are very tight lipped and have admitted 'a very serious shortfall in fund': looks like they may wind it up. Are we powerless? Are my contributions over the past 30 years gone forever? Can I do anything about it? Thanks in advance.


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## d53 (19 Sep 2010)

You have the right to know what's going on.  Ask the trustees of the scheme for a copy of the most recent actuarial report of the scheme.  Any problems getting information, talk to the Pensions Board.

d


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## Betsygirl (20 Sep 2010)

You can complain about the trustees to the pensions ombudsman for mal-administration which is what this sounds like. Good luck


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## Don_08 (20 Sep 2010)

This is not maladministration. Legislation was introduced last year permitting trustees or the pensions board to reduce the benefits under certain circumstances. The first of these cases are just starting to come through now and looks like there will be more and more of them by the end of the year.

Sounds like they should be a bit more upfront as to the information they are giving you though.   If this is a section 50 which it sounds like it is, then they do not need your consent - but have to follow procedure.  

As a minimum they have to provide the following information to you (taken from the Pensions Board site):


_*3.1* The application for an amendment of a scheme in accordance with section 50/50A of the Act will, if granted, have a significant impact on scheme members’ benefits. Accordingly, the Board requires that, prior to any application being made, the trustees must provide information to scheme members on the implications of and rationale for the reduction in benefits. This communication should use clear and concise language that the member will understand and should set out, as a minimum:_

_why the trustees believe such an application is necessary/appropriate;_
_the proposed benefit reductions in each benefit category/membership category;_
_the trustees’ reasons for treating some categories of benefits differently to others; and_
_a statement that observations on the proposed reduction may be submitted in writing by or on behalf of any member for consideration by the trustees or employer as appropriate within one month of the date of the written notice and the name and address of the person to whom observations should be sent._
_*3.2* It is important to note that applications under section 50/50A do not require member consent and, therefore, it is for the trustees to decide whether an application should be made and the specific benefit reductions that are to be applied for. The Board expects that the trustees will give due consideration to any comments arising from the communication process. The communication process should remain open for one month to allow adequate time for member response._
_*3.3* As part of the application process, the trustees must confirm to the Board that all members of the scheme have been issued with a communication at their last known address. The trustees should enclose a copy of this communication with their application._
_*3.4* The trustees must also comply with the requirements of section 50(3)(a)(ii) of the Act where a section 50/50A amendment is effected._


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## Complainer (20 Sep 2010)

Sounds like this scheme; 

[broken link removed]

OP - Are you a union member? If so, you should probably work through your union on this major problem.


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## TheFatMan (22 Sep 2010)

Betsygirl said:


> You can complain about the trustees to the pensions ombudsman for mal-administration which is what this sounds like. Good luck


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Betsygirl you can only file a complaint with the Ombudsman after you have been through the internal dispute resolution process of the pension scheme itself.

The under-funding of the DB pension scheme here appears to be as a result of the global financial disaster. If this is the Examiner scheme thats in question it was fully funded as of Jan 2006. The Trustees cant be held responsible for mal-administration if they like sheep followed what was trumpeted as a regular investment strategy at the time.

If they chose to invest in lotto tickets there might be a case to answer for mal-admin. But if they took the normal investment advice being touted at the time the fund probably lost as much as 50% of its value.


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