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.
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
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?
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
