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No names yet, and as of yesterday evening my broker was working on it. Which must mean something serious.
Has anyone else had bad news from their pension company? Like - your money has run out.
(edit) That the broker was on it before I got in contact might mean it isn't only me affected.
Has anyone else had bad news from their pension company? Like - your money has run out.
If it's a defined benefits pension, it just gets rescued by the Pension Protection Fund and if you've already retired they just pay out at 100% and it continues. Deferred members normally lose 10%.
If it's a defined contribution fund, then it would normally be converted to an annuity at retirement and unlikely to run out as the annuity providers are massive. I suspect the PPF also kicks in if an annuity provider folds.
If you've retire and drawing down from a stock portfolio / cash fund then it could run out and you'd be high and dry, but you should have seen it coming for years....
Things are much better now than the days of Maxwell, when you could easily lose everything through no fault of your own.
Thanks ff. I'm less than a year into claiming, the Pension Co said the money had run out. This is after I've had about 2.5% of the original figure that went into the annuity. I'm quietly confident that the broker is on the case.
I assume a system went tango uniform, in which case others might be affected. Though the subset of retired STW members with that particular Co might be just me.
In the event your annuity provider goes under and no other company is willing to take over their books, then protection is provided through the Financial Services Compensation Scheme.The FSCS will continue to pay out 90 per cent of your annuity income if you claim after your provider defaults, and this compensation will also take into account the value of spouse's benefits and inflation cover.
If you took out your annuity before January 1, 2010, then the FSCS will honour 100 per cent of the first £2,000, and 90 per cent thereafter.
A workmate had been at a previous company for >30 years when an incoming buyer did a Maxwell with the pension fund, and got away with it. He was devastated.
I'm confident that my IFA are on my side. Thanks again, ff, I'm content that I'm covered.
