I am in a DB scheme(non-contributory) for over 20 years with my company. About 3 years ago they started a DC scheme for new staff. Now the DB staff are being asked to contribute up to 8% of final pensionable salary to the DB scheme. Despite having a staff member on the committee, we have not been given any reason for this request, but rumour has it the scheme has lost 13 or 14 million.
I know many schemes lost money this year, but one man I know says he made money on his own investments by transferring in time out of lossmakers into commodities. Why did our committee not see the loss coming as he did? Why didn't all these whizkids listen to the David McWilliamses etc?
I know the company is legally entitled to change or even discontinue the scheme for prudential reasons. But, if I refuse to contribute, can they throw me out of the scheme altogether? If I contribute, how can I have some say in the running of the fund? A single staff rep has no power at all there among 7 or 8 higher authority figures.
I know many schemes lost money this year, but one man I know says he made money on his own investments by transferring in time out of lossmakers into commodities. Why did our committee not see the loss coming as he did? Why didn't all these whizkids listen to the David McWilliamses etc?
I know the company is legally entitled to change or even discontinue the scheme for prudential reasons. But, if I refuse to contribute, can they throw me out of the scheme altogether? If I contribute, how can I have some say in the running of the fund? A single staff rep has no power at all there among 7 or 8 higher authority figures.