# Banks' Pension Scheme Review - Status of members with Deferred Benefits



## Clohass (1 Mar 2010)

I worked with one of the main banks and left about 10 years ago. I have deferred Benefits from my time in this employment. 

I received a letter last week advising me that a review of the banks Pension Schemes is currently taking place. This letter indicated that I would be advised on progress but did not suggest that I would have any opportunity for input into this review. 

I'm wondering do I have any rights to be consulted or am I merely entitled to receive the outcome of this review. 

Can this review diminish entitlements built up to date or is it likely to be limited to what happens from the point of the review.

All views/information welcome. I currently feel like I don't have a voice in this process but it has the potential to impact seriously on our future. When I left this employment the fund was in Surplus.


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## oscarp (2 Mar 2010)

*Re: Pension Scheme Review - Status of members with Deferred Benefits*

we've recently gone through something similar and have had similar feedback from pensioners. 

the trustees have to ensure that all members are treated equally, regardless whether you are an active member, deferred or a pensioner. so in theory you will get the same deal as everyone else.

the employer is entitled to change the terms of the scheme and could touch benefits built up if they are having funding issues. they won't be able to take away your lenght of service, but could change the entitlements (i.e. change from final salary to CARE scheme).

it is unlikely that you will get the opportunity to negotiate or influence the outcome, though you are entitled to be kept informed and you can request a copy of any communications from the employer/trustees.

i hope this helps, it's my understanding of things so may not be entirely accurate!


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## WaterWater (3 Mar 2010)

*Re: Pension Scheme Review - Status of members with Deferred Benefits*

I have a deferred pension from a financial institution. In the past 10 years I have received no communication at all of any type from my former employer about my pension, ever. The only communication that I get is when *I* contact Mercer who administer the pension. They never pro-actively send me anything. I always have to ask them and even then I am required to know what to ask.

I am certainly not being treated equally and would love some sort of input.


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## JoeRoberts (3 Mar 2010)

*Re: Pension Scheme Review - Status of members with Deferred Benefits*

They are not required to send out annual statement for deferreds. However you could request a statement yourself and you could also contact the trustees and request a copy of the annual report. Put it in your diary to do it every year.

This is within your own control. People need to start being a bit more proactive about their pensions and take more of an interest and responsibility.

"I am certainly not being treated equally and would love some sort of input."

Why do you think you are not being treated equally ?


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## StevieC (3 Mar 2010)

*Re: Pension Scheme Review - Status of members with Deferred Benefits*

Hi Clohass

Pension schemes are run by Trustees. One of the obligations of Trustees is that the funds of the pensions are invested in suitable investments. Its pretty obvious at this stage that many Trustees have not been doing the best job in this area. Trustees can be held personally responsible if they are found to be negligent in their duties.

To be honest this is a bomb waiting to happen. I foresee someone taking a class action against the Trustees of schemes like yours if they decide to diminish peoples benefits promised to them. Its one thing where a company is wound up and cant afford to pay its pensions, its quite another if a Bank that is being run as a going concern decides to not make good on its promises. Bear in mind most of the main banks have done away with new entrants entering defined benefit schemes (the ones that have shortfalls) and the amount of liabilities they have is limited to the amount of persons that they have already made promises to.

Tongue in cheek if they do reduce the benefits because they say they cant pay, if you had a mortgage with them I would be inclined to say, thats ok if you cant pay, just knock the difference off my outstanding mortgage!!!

Wait and see what their next move is, the very ones that have told us for years that past performance is no guarantee of future performance should in my opinion hold a healthier view of what the future will bring for investments or else why would anyone bother buying a pension product!!!


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## Deiseblue (3 Mar 2010)

In the case of the BOI they have sent a letter to all members of the schemes under their aegis detailing their rather radical proposals for change.
What they have rather strangely omitted is that all members will have to ratify by a majority such changes .
I do know that the IBOA is unhappy with quite a few of the proposals , so interesting times ahead!


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## WaterWater (4 Mar 2010)

*Re: Pension Scheme Review - Status of members with Deferred Benefits*



JoeRoberts said:


> "I am certainly not being treated equally and would love some sort of input."
> 
> Why do you think you are not being treated equally ?


 
Why are people who are receiving their pensions given an annual report automatically but people on deferred pensions/pensions not given an annual report automatically. If anything those people who are no longer in the workplace are further removed and would might say forgotten about in the decisions process.
I am not kept informed about decisions, outcome of decisions, possible changes etc, dates when things are happening, meetings etc.


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## StevieC (4 Mar 2010)

Simple answer, you are not an employee anymore, they care less.

More complex answer, people change address etc., ensuring that benefit statements got to all ex employees would be an administration nightmare.


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## Deiseblue (5 Mar 2010)

I attended the IBOA meeting last night to discuss the ramifications for current,deferred and retired members of the various BOI pension schemes.
The upshot was that retired members were told that there pensions were safe although the question of discretionary increases in future could prove problematic.
The union had huge difficulties with the effects the bank's proposals would have on current staff and said they could not possibly recommend the current proposals.


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