Requirement to pay 5% of salary to a defined benefit scheme

[Heraldo]

I am a member of a defined benefit pension scheme. The trustees of the scheme are changing some of the rules: -

1. New requirement to pay 5% of basic salary for existing members.
2. The scheme is closed to all new entrants.

Can the trustees do this ? and if so, do they require the consent of the members ?

 

[StevieC]

They can close the scheme to new members any time they want. In regard to asking for a contribution of 5%, normally employee's/unions would be consulted. It is a change to your terms and conditions of employment. The question you have to ask yourself is do you really want to fight it because making a 5% contribution to your defined benefit pension is still very cheap for the type of benefits you will receive and given the times that are in it, it may be better to just accept it.

 

[ajapale]

Is this a non contributory scheme that is being made contributory? If not what was the old rate of contribution?

Do you have a scheme booklet?

Are you a member of a trade union?

How financially secure is the scheme? How financially secure is your employer?

 

[minion]

The question you have to ask yourself is do you really want to fight it because making a 5% contribution to your defined benefit pension is still very cheap for the type of benefits you will receive and given the times that are in it, it may be better to just accept it.

And also you have to ask, if they can do this now what other little tricks have they got up their sleeves for the future. Seems to me like they can do whatever they like.

Will they want 10% next year and 15% in another few years.