preserved benefit

benny fitt

Registered User
Messages
30
I am currently a member of a pension scheme which is defined benefit and is underfunded.Following a merger i am moving into a new company inwhich my current employer has a minority interest.
I am being asked to become part of a new scheme in the merged entity and to leave my preserved benefit in the present scheme.

Am i not entitled to remain in the current scheme? and if not is it better to transfer my funds to the new scheme or is it better to ask for a buy out bond?I am told the preserved benefit will grow at 4% or CPI whichever is the lower.

I suspect my present employers are trying to wriggle out of the underfunding liability .Both schemes are defined benefit and are identical terms,so why go to the cost and bother of a new deed of trust,new auditors,new legal fees and actuarial fees?
 
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