Pension scheme wind up?

[peterwilson]

Hi
A company I used to work for years ago contacted me to say that the pension scheme was being wound up.
Does anyone know what happens to my pension?
Are the funds I contributed held over (if so where) until I retire?
Or do I just get a payment (minus fees) now?

Thanks
p

 

[Squaremile]

Peter,

You should in due course receive an Options Form where a number of choices are laid out for you (depending on your individual circumstances - age, number of years service with the company etc).

The options are typically to transfer the funds into a 'private' fund -a retirement bond/buy-out bond or to a PRSA (depending on years service); transfer into the default retirement bond selected by the Trustees; transfer to your existing occupation pension scheme (if applicable); and occasionally depending on your age you may have the option to take 'early retirement' from the scheme.

Its always worth taking advice from an independent pensions expert to evaluate which is the best option, as for example the amount you will be able to draw down tax free from the fund will differ depending on whether it is transferred into a buy-out bond or PRSA. Also charges on policies can differ significantly.

Regards,
Andrew