# Can Company change Pension from Non-contributory to contributory?



## getoffthepot (15 May 2009)

I have been working in a company for 30 years with a defined benefit non-contributory pension scheme.
Can the company change that to contributory i.e. 8% contribution going forward.


----------



## BOXtheFOX (16 May 2009)

I worked for the Bank of Ireland and in their non contributory pension scheme. When I resigned from the bank they refused to give me any sort of pension as it was a non contributory scheme. I often wonder what happened to the money that was being put aside for me over all those years. I guess it went to beef up the recent retirement of senior executives.
If your company is changing your scheme and can change your scheme make sure that your 30 years of non contributory pension will be paid to you if you decide to leave their employment and not just the portion back to 1991 when pension rules changed.


----------



## Bronte (18 May 2009)

BOXtheFOX said:


> I worked for the Bank of Ireland and in their non contributory pension scheme. When I resigned from the bank they refused to give me any sort of pension as it was a non contributory scheme. .


  Will you not get a partial pension from this at retirement age?


----------



## StevieC (18 May 2009)

In regard to BOI pensions, you get vested rights after 2 years now. It was previously 5 years. 

Depending on the time period if you worked over 5 years with BOI then you would have had vested rights and therefore the right to a deferred pension/transfer value.

If you only worked for them for a short time then it could be correct that you have no value.


----------



## StevieC (18 May 2009)

Got offtopic with last post sorry. In relation to companies changing scheme rules. It is not normal but it can happen. Usually new rules apply to only new members but if the fund is in really bad shape then the Trustee's could change the scheme rules. As this is part of the terms and conditions of your employment though, I would have thought it would require your conscent.  

If you are unionised I would take it up with them, if not then it may be a case of biting your lip and being grateful that you still have a Defined Benefit scheme as most people do not have what is now seen as the Rolls Royce of pensions.


----------



## jhegarty (18 May 2009)

getoffthepot said:


> I have been working in a company for 30 years with a defined benefit non-contributory pension scheme.
> Can the company change that to contributory i.e. 8% contribution going forward.




Any chance this company is the government ?


----------



## Bronco Lane (20 May 2009)

Bronte said:


> Will you not get a partial pension from this at retirement age?


 
I think that there is a problem with people that left the Bank of Ireland  prior to 1991 regarding their pensions irrespective of their number of years service that they had. Seems unfair.


----------



## Westbound (20 May 2009)

There was no legal requirement to preserve pensions for pension members prior to 1991 (pre Pensions Act).

The scheme itself may have allowed it in its rules. I am surprised a scheme the size of Bank of Ireland's wouldn't have had such a rule. You may not have been allowed a pension at the time as maybe you were under 50 or early retirements were not allowed. It would be worth checking to see if you have an entitlement at age 60 or 65 depending on the scheme retirement age.

With regard to the imposition of contributions - this is allowed, but generally with member agreement i.e. I don't think it can be imposed unilaterally. Normally you would be given an opportunity to agree, but that said, if you don't, you will more than likely end up on a lower scale of benefits for future accrual e.g 1/80ths instead of 1/60ths.

I would expect many more schemes to introduce or increase contributions to try and get schemes back to some level of normal funding.


----------

