Defined Benefit Schemes - Order of Entitlement?

M

Mit55

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I've been reading this morning about Government plans to change the order of entitlement under DB schemes which fold up. The plan I think is to put existing employees on a level footing with current pensioners.

Does anyone know what the current position is. My understanding is, but I'm open to correction is that its in this order

1. Existing pensioners
2. Current Employees
3. Former employees with deferred pensions

There are probably other categories as well. Anyone have a link to correct info?
 
Pensioners will still have priority - just any increases they get on their pensions in the future will rank below actives and deferred pensioners.
 
Yes, that looks like what the future scenario is going to be. I'm just wondering what the current order of priority is.
 
Current order is

Expenses of wind up
Benefits secured by AVCs
Pensioner Liabilities ( inc full pension increases)
Actives and Deferred Liabilities with revaluation only applying to post 91 accrued benefits
Revaluation on pre 91 Accrued benefits

Actives do not get priority over deferreds
 
Cheers Don. Thats exactly what I was looking for. I didn't quite know where deferred stood in relation to active employees.
 
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