Is my pension safe?

If a Scheme was to start to ‘wind up’, the sponsoring employer/s would be required to pay enough money into the Scheme to enable the members’ benefits to be completely secured with an insurance company.

However, it may be that an employer would not be able to pay this full amount. Therefore, the Pension Protection Fund (PPF) might be able to take over the Scheme and pay compensation to members in circumstances where the ‘wind up’ occurs with a shortfall of assets to cover the liabilities of the scheme. Further information and guidance is available on the PPF website.

Pension scams can lose you money or result in significant tax charges. To help you avoid pension scams and protect your future income, click here to review a leaflet produced by the Pensions Regulator about transferring Defined Benefit pensions. Further information is also available on the FCA Scam Smart website, which can be found at https://www.fca.org.uk/consumers/pension-scams