Benefits on Wind-Up

[barney]

When a pension scheme winds up, do actives and deferreds always get a deferred annuity (assuming there's enough money to buy them)? Can the Trustees decide to buy immediate annuities for pensioners & just give actives & deferreds a transfer value? thank you.

 

[Stuart Underwood]

Hi Barney

The trustees can generally give active and deferred members the option to take a transfer value on wind-up, but cannot force them to take a transfer value.

Hope that helps,

Best wishes

Stuart

When a pension scheme winds up, do actives and deferreds always get a deferred annuity (assuming there's enough money to buy them)? Can the Trustees decide to buy immediate annuities for pensioners & just give actives & deferreds a transfer value? thank you.

 

[barney]

thank you. does a Schedule of Contributions have to be completed as part of the SFO valuation whether or not the scheme is in deficit? i.e. does a fully funded scheme need to produce a Schedule of Contributions?

 

[Stuart Underwood]

SoC

Hi Barney,

Yes, a Schedule of Contributions is needed whatever the funding position.

A Schedule of Contributions sets out the contributions to be paid. For example:

- even if there is a surplus, it could still be that contributions are paid, eg to meet accrual
- even if no accrual or deficit contributions paid, then the SoC is also likely to specify what the employer needs to pay, if anything, towards scheme expenses.

Best wishes

Stuart