Defined Pension Scheme

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Hi All - Great site and I recommend to all my friends.

Brendan, I would like your opinion on this query. I recently took a
redundancy package at work having completed 40 yrs service.
When I was about to leave I was told I could not get my pension
until I was 65 as the fund had been drained due to a number of
people having retired. About 6 yrs ago we increased our contributions
with the approval of management to take early retirement at 63
but they're saying that this is also not possible at this point in time.
I also have AVC's but I understand that these are locked into the
penion and cannot be touched. I know the markets has had a bad
affect on pension funds but nevertheless I'm disappointed with the
outcome of my situation.

Grace
 
Seems odd. If you have completed 40 years service, presumably you are circa 60. All pension schemes allow provision for early retirement. If the scheme is "drained" then it must have major funding difficulty (have you seen the most recent Actuarial Valuation?). If so then it cannot meet funding requirements of the Pensions Act. If it is that bad I cannot see the position improving in say 5 years unless the employer takes drastic action.

I suggest you get much more information from the Trustees and enquire how the fund was "drained" (as a few people retiring should have been planned for).
This smells.

Conan
 
Thanks Conan for reply.

I will ask to see the last Actuarial report. I forgot to mention that
they quoted The Social Welfare Act Amendment 2003 which provides
protection for a Pension Plan that may be under funded.



thanks again

Grace
 
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