Final salary pension closure by employer insolvency and the Pension Protection Fund (PPF)
There are some well-known schemes closing so what happens on a final salary pension closure by employer insolvency? A final salary pension closure is a very big deal and one not to be taken lightly for one very big reason. On final salary pension closure, if the payment of benefits is taken over by the Pension Protection Fund (PPF), where all members lose the right to transfer.
So, a final salary pension closure could have a great impact on you, your retirement, and your family. Imagine you are single, in poor health with two grown up daughters and have a deferred pension and a CETV of half a million pounds. If you were to transfer and die early in retirement your daughters may benefit significantly from your half a million pound CETV but on a final salary pension closure before you reach the scheme normal retirement date, and your pension being taken over by the PPF, your final salary pension will be reduced to 90% of its value and you will no longer be able to transfer out and, depending on the scheme rules, your daughters may receive no benefits whatsoever if you die in retirement. So, if you suspect a final salary pension closure you should seek expert help and advice immediately and we can help. Just complete the form above.
If your company is closing final salary pension schemes then it is important to seek expert help urgently as on closing final salary pension schemes, once the PPF is involved you automatically lose your right to transfer and take advantage of pension freedoms.