B
billwinters
Guest
Hi,
I was a member of Independent News and Media PLC for over 40 years and was made redundant last year. I have been told that I can't access my defined benefit pension until I am 65 and I am a few years off that now.
Yesterday (11th Sept) I received an undated single-page letter in the post. This informs me that the defined benefit scheme as it currently exists is only 77% solvent. There is a need to move existing members and benefits to a new scheme (no detail of this is provided!) and the existing defined benefit scheme is to be closed to new members. My consent is needed for such a move and this consent (signing of letter of invitation) is to be returned no later than 14thSept, a ridiculously short period of time.
The letter stresses that this new scheme will protect the benefits of the existing members, which to me implies, as it is probably intended to, that the existing scheme is somehow insecure. Googling it has produced the following link which contains almost as much info as the letter I received.
[broken link removed]
Nowhere in the letter is it stated that the new scheme will also be a defined benefit scheme, and although this has been confirmed to me (verbally) by the designated pensions contact in the Independent, my fears are not allayed. My question really is this: since I am in a defined benefit scheme, surely it's up to the employer to worry about whether the scheme chosen is solvent and not my concern.
Should I sit tight and not sign? What questions should I be asking?
Thanks and Regards,
Bill
I was a member of Independent News and Media PLC for over 40 years and was made redundant last year. I have been told that I can't access my defined benefit pension until I am 65 and I am a few years off that now.
Yesterday (11th Sept) I received an undated single-page letter in the post. This informs me that the defined benefit scheme as it currently exists is only 77% solvent. There is a need to move existing members and benefits to a new scheme (no detail of this is provided!) and the existing defined benefit scheme is to be closed to new members. My consent is needed for such a move and this consent (signing of letter of invitation) is to be returned no later than 14thSept, a ridiculously short period of time.
The letter stresses that this new scheme will protect the benefits of the existing members, which to me implies, as it is probably intended to, that the existing scheme is somehow insecure. Googling it has produced the following link which contains almost as much info as the letter I received.
[broken link removed]
Nowhere in the letter is it stated that the new scheme will also be a defined benefit scheme, and although this has been confirmed to me (verbally) by the designated pensions contact in the Independent, my fears are not allayed. My question really is this: since I am in a defined benefit scheme, surely it's up to the employer to worry about whether the scheme chosen is solvent and not my concern.
Should I sit tight and not sign? What questions should I be asking?
Thanks and Regards,
Bill