The long established formerly blue-chip DB scheme, of which I am a deferred member is being wound up by my former employer due to a substantial deficit incurred over the past two years.
I have been advised that the company will be (fortunately for me as a deferred pensioner) securing 100% of the transfer value of my accrued benefits to my date of leaving in line with actuarial guidance. This amount will be paid into a Personal Retirement Bond. The company has secured preferential terms from an insurance provider.
Obviously, this is very worrying. My concern at the moment is the amount of accrued benefits that will be transferred.
How is the amount of accrued benefits calculated?
Is there a standard formula that I can use to check the figure the company will give me?
Does the phrase with actuarial guidance add some subjective variance to the calculation?
Are there specific tax benefits that I should be careful to maximise?
Are my AVC's added to the PRB (my AVC's are secured independently of the wind up)?
I have an existing separate PRSA.
Can my PRSA be added to the PRB at this time or should I keep the PRSA for future employment?
The normal retirement age for the scheme was 60.
I had 28 years pensionable service.
I am now over 50.
The pension was non-contributory.
I am resident in Ireland.
I am married with children.
I am currently not working having recently completed a medium term contract.
In light of the above information are there particularly vital questions that I should be asking?
There is a helpline provided by the company, but, obviously I want to gain as much independent knowledge before contacting them.
Any advice will be greatly appreciated. I totally understand that investment decisions regarding the PRB are my responsibility.
I have been advised that the company will be (fortunately for me as a deferred pensioner) securing 100% of the transfer value of my accrued benefits to my date of leaving in line with actuarial guidance. This amount will be paid into a Personal Retirement Bond. The company has secured preferential terms from an insurance provider.
Obviously, this is very worrying. My concern at the moment is the amount of accrued benefits that will be transferred.
How is the amount of accrued benefits calculated?
Is there a standard formula that I can use to check the figure the company will give me?
Does the phrase with actuarial guidance add some subjective variance to the calculation?
Are there specific tax benefits that I should be careful to maximise?
Are my AVC's added to the PRB (my AVC's are secured independently of the wind up)?
I have an existing separate PRSA.
Can my PRSA be added to the PRB at this time or should I keep the PRSA for future employment?
The normal retirement age for the scheme was 60.
I had 28 years pensionable service.
I am now over 50.
The pension was non-contributory.
I am resident in Ireland.
I am married with children.
I am currently not working having recently completed a medium term contract.
In light of the above information are there particularly vital questions that I should be asking?
There is a helpline provided by the company, but, obviously I want to gain as much independent knowledge before contacting them.
Any advice will be greatly appreciated. I totally understand that investment decisions regarding the PRB are my responsibility.
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