How safe is your pension?
How safe is your 'deferred final salary'
pension?
The Pension Protection Fund was established to
pay compensation to members of eligible defined
benefit pension schemes, when there is a qualifying
insolvency event in relation to the employer and
where there are insufficient assets in the pension
scheme to cover Pension Protection Fund levels of
compensation.
The publicity surrounding the Pension Protection
Fund (PPF) has convinced most individuals that the
problem has been solved, but schemes which require
assistance from the PPF to fund benefits could leave
some members seriously disadvantaged when they
retire.
The majority of deferred members are concerned about
the security of their final salary pension scheme
benefits, yet most advisers are not in a qualifying
position to offer advice on a scheme's current
status, and whether or not a transfer of
occupational benefits is the right thing for the
deferred member.
Nobody can predict which schemes will get into
difficulty and require assistance from the PPF, and
hopefully most clients never have to be put in a
position whereby they need the protection from the
PPF, but we can be sure that many thousands of our
clients will be affected in the future, and may
suffer as a result.
Recent examples show that it is now too late to
offer help to deferred members of the MG Rover Group
Pension Scheme or Leyman Brothers, but it is better
that deferred members are aware of their position
sooner rather than later in case the scheme gets
into financial trouble.
To find out more about your 'deferred' benefits and
what the potential implications of coming under the
PPF could be for your 'preserved' pension benefits,
please contact Ashton Hoyle to discuss
further the
benefits of getting a full report.
Whatever your financial advice requirements are,
you can be assured that Ashton Hoyle are well
positioned to provide an innovative answer and we
look forward to speaking to you on any financial
matter. Contact us now
to see how we can help. |
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