What is considered reasonable timeframe for update from Pension Comapny

S

sparks

Guest
Hi,

I am currently acting as a trustee of a company pension scheme. The company closed down in 2001 and no more contributions have been made by the former employer or employees.

I think the pension is in a deffered state.

I have received no documentation either for my contributions or as a trustee.

Should the pension company send me this information as a matter of course or do need to request it?

Thanks.
 
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Brendan
Administrator
 
Hi sparks,

Are you the only member of the scheme or are there others?

If all the members are deferred, there's no obligation on the pension company to provide regular reports, except on request.

Are you the trustee personally? Is it just you? Is the trustee a company and you the representative of that company?

Being a trustee of a pension scheme carries a fair few legal responsibilities. You also are obliged to undergo formal trustee training every two years and the deadline for doing that for you would have been February 2012. If it was me, given that the employer closed down in 2001 I think I'd wind up the pension scheme and thus remove myself from the responsibilities of being a pension scheme trustee.

Liam D. Ferguson
 
Hi Sparks

If the scheme has assets remaining, you should receive an alternative annual report on the scheme renewal date which would give you an update of the current value and amount of deferred members. Is this an occupational dc pension scheme? If you can provide more details I may be able to shed some light on this.

Alan
 
Hi Guys

thanks for your response.

It is a DC pension scheme, with about 10 deffered members. The company we worked for closed in 2001.

According to the pension company there are currently 3 trustees, me, the former manager and the former company. But as the company is closed and no longer trading I don't see how it could still be a trustee!

I as a deffered member or as a trustee have not recieved any documentation for more than 7 years, not even an annual report. One of the formembers has transferred his contributions to another pension scheme, and don't know what happend the company contributions for him, if they were transferred also.

Any advice apreciated.
 
Even though the company has ceased trading, if it it still exists then the company still shares the responsibility with you as trustee. Check the CRO website to see if the company is still live. If so, then all directors of the company have a legal obligation to undergo the trustee training, along with you and the former manager.

If the company has been wound up, then the responsibility for being trustee of this scheme rests with just you and the former manager. Personally I wouldn't want the responsibility of being named as trustee of a pension scheme with up to ten members on behalf of a company that no longer trades. Have a look at the Pensions Board website to see what responsibilities you're currently carrying.

In the circumstances you describe, I think the best thing to do would be to start the process of winding up the scheme. All funds will be transferred out of the scheme into whatever other pension vehicles the 10 members want, with a default option available if a member doesn't choose within a set timeframe or cannot be contacted. Any financial broker with pension scheme experience should be able to help you wind up the scheme. Shouldn't cost you anything as payment can be arranged from the pension funds.
 
Hi Sparks. I work in a group pensions area of a life office and deal with this on a regular basis. Basically you need to request leaving service options per member and write to them at their last known address and give them 30 days notice that their benefits will be transferred to a prb/prsa if you do not hear from them within the timeframe. If you do not hear from them you will have to fill out a bulk application form to transfer them to whichever product is available. Once all the assets are gone from the scheme a wind up resolution will be drawn up and the scheme can be formally wound up and the pensions board notified etc. DO you need any more info on this?
 
Thanks again for your response most helpfull thanks LDFerguson, and ClearFinance.

Yes please ClearFinance if you have anything on this that would be great.
Do both trustees have to agree on winding up?
 
Yes the trustees have to agree on winding up.

Have a look at [broken link removed] from the Pensions Board.
 
Hi Sparks

Yes it would be helpful if both trustees were in agreement to wind up the scheme. This will remove you and the other trustee(s) of your responsibilities which will save you more hassle down the line. As the company is no longer open it is best to wind up the scheme in my opinion. I am relatively new to this forum so am I allowed to ask what life office this is in? If it was where I work I could ask the scheme contact to get the ball rolling. If not I could potentially give you a step by step email to send to the relevant life office to get them to start the process for you. I do not want to overstep the rules of the forum if I am by suggesting this. Thanks
 
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