I was in a DB scheme prior to 2008 and that scheme was eventually closed. I retired in 2014 and my pension was 50% less than projected so I wouldn’t put much store on projected figures.
Yes the DB scheme has been closed since 2011 but the DB scheme is still accruing benefits.Every DB scheme , whether open or closed, does not provide an absolute guarantee that the “promised benefit” will be paid on retirement. All such schemes are dependent on the scheme remaining ”solvent”. Its not clear from your post whether you are still accruing benefits on a DB basis (ie the scheme is closed to new entrants from 2011 but existing members remain in a DB struct ) or whether your DB benefits were frozen in 2011 and you are in a D.C. scheme since 2011.
In either event, any DB entitlement must be properly funded by the Employer, unless the DB scheme is wound up and you are offered a Transfer Value into a DC scheme.
Its not the case that you can simply transfer your DB over to a DC. From reading your post it suggests that you are still in a DB scheme. If so, then the Employer must satisfy the Pension Authority that it is properly funding the scheme. They must provide regular Actuarial Funding Certificates to show that they are properly funding the promised benefits (or have a financial plan to do so).
Yeah I am in the first example you have explained there.Two separate possibilities:
- The DB is closed to new entrants, but existing members at 2011 remain accruing benefits on a DB basis. In that case both you and the Employer continue to invest contributions and the scheme must satisfy the Pensions Authority that the funding is sufficient.
- The DB is closed to all. No further benefits are being accrued and you have a deferred benefit based on service and salary as at 2011. All members are now in a D.C. scheme into which you and the employer contribute (a separate fund for each member). In that case, the Employer still has a liability To fund the deferred benefits DB benefits. So assuming the Employer does maintain the solvency of the DB element , your frozen DB should be ok.
I am unclear as to which applies to you.
I can't remember all the details but the problem seemed to be that because of the recession and all the investments had collapsed the fund did not have sufficient time to recover before my retirement. My employer had increased their contributions and I also upped my percentage but the market was volatile. I would not put much store on their projections as if your employer does not pay in what they require then the scheme will be underfunded. I don't know if I would transfer at the moment as values are low - they seem to be increasing so maybe wait a while.Oh. Wow that’s not encouraging. Looking back if you had the chance to have moved to a DC scheme would you have done that?
my understanding of a DC scheme is what you put in goes into your individual pot as opposed to a dc where it goes into the members scheme.
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