Your employer will make a proposal on the future provision of your pension, and advise the trustees/administrator of your pension scheme.
The trustees/administrator of your scheme will contact you in writing. The correspondence from the trustees/administrators of your pension scheme will formally set out the proposed changes.
The trustees of your scheme or employer will spend some time talking to a range of stakeholders about your pension and how to decide on the best way forward.
This will include professional advisers, trustees and, if you have one, a union or their representatives.
As these discussions are likely to close your scheme, the trustees of the scheme or your pension provider/employer will formally talk to you about the proposed change and what it is likely to mean to you. This might coincide with correspondence from your employer/former employer.
The trustees/administrator of your pension scheme/employer will formally propose changes to your scheme and then consult with you.
They should explain:
- the pros and cons of different options (such as moving from a defined benefit to defined contribution or changing the age that you can retire.)
- the risk of being scammed
- contribution levels
- current value of benefits
- flexibility of benefits
- whether the scheme could enter the Pension Protection Fund.
Again, if you are unsure of the implications of these changes it’s a good idea to talk to a regulated financial adviser (which you would need to pay for) or get expert guidance.
The trustees/administrators of your scheme/employer are likely to set up helpline services or extra support for you, but you can also contact us.