Proposed Legislation

149oaks

Registered User
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Does anybody know if the proposed legislation allows Trustees when winding up a DB scheme that meets the Minimum Funding Standard to cut the existing payments to current Pensioners and hence give both active & deferred members an increased valuation?
 
Only schemes which dont meet the Minimum Funding Standard can cut pensions. In fact the funding level for actives and deferreds has to be under 50% before pensions can be cut.
 
Really?
Well I would understand that underfunded schemes should be focussed on.
But in schemes that just meet the Minimum Funding (note not Fully Funded and there is a big difference) why should existing Pensioners get a fully funded pension whereas those whom are not get their values etc based on the lower Minimum Funding. This isn't equitable!
 
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