Pension scheme wind up - where do non-vested funds go?

[wideawake01]

In January 2011 I was made redundant from a company in which I had been a member of the DC pension scheme for less than two years. That company was subsequently taken over and the scheme is now being wound up. I have been advised that I have some choices but only with the value of my own contributions. To whom do the employer contributions now belong?

 

[Baracuda]

Interesting question! When the company you worked for was taken over it would be safe to assume that the new company also took over all assets and liabilities, therefore the new company would be the owner of the employer contributions.

 

[JoeRoberts]

In my experience, the life assurance company normally keep the employee contributions and don't give back to the company unless really pushed to do so.
This is an area that needs to be changed in pension law, there is no reason for a vesting period in DC schemes. Employees should be entitled to the full fund. It is part of their renumeration. It is a carry over from DB schemes that has no logic for DC schemes.

 

[wideawake01]

Thank you for your replies. I spoke to the new company's pension manager who said they had not considered reversions of the previous company's pension contributions in their acquisition, and that subject to board approval he would be amenable to release these amounts to the people involved. So it appears it is in the gift of the new company to disburse or retain previous employer contributions where the vesting period has not been satisfied.
I concur with JoeRoberts, I cannot see any reason for a vesting period in a DC scheme.