Hi all, I need some advice and would appreciate any help. I am automatically enrolled in a defined benefit scheme in a semi state company.
The dB scheme is closed since 2011.
I got my statement in the door this week and I gave it a good read where I seen:
“The scheme is funded by contributions paid by the employees plus the company. There is no guarantee that the scheme will have sufficient funds to pay projected benefits and it is possible that projected benefits under the scheme could be reduced”
Am I right in thinking that because my scheme is closed, there are no new employees paying into the fund only money going out to current pensioners, so how will the fund be able to provide for my pension at the benefit rate shown on my scheme?
should I be thinking of changing over to a dc scheme?
I’m not too well up on pensions so any help you can give would be great.
thanks.
The dB scheme is closed since 2011.
I got my statement in the door this week and I gave it a good read where I seen:
“The scheme is funded by contributions paid by the employees plus the company. There is no guarantee that the scheme will have sufficient funds to pay projected benefits and it is possible that projected benefits under the scheme could be reduced”
Am I right in thinking that because my scheme is closed, there are no new employees paying into the fund only money going out to current pensioners, so how will the fund be able to provide for my pension at the benefit rate shown on my scheme?
should I be thinking of changing over to a dc scheme?
I’m not too well up on pensions so any help you can give would be great.
thanks.