Brauny Blue
Active Member
A few months ago i asked the forum for any advice regarding doing some self employed work, after having my hours cut at work.
Yesterday i was dealt another blow when the company announced it will end our FINAL SALARY PENSION SCHEME in 2013. They are offering us another pension scheme, which whilst it looks o.k its obviously not going to be as good as the final salary scheme.
The advice i'm after, is should i freeze my final salary scheme immediately or continue until it ends in 2013, and then take the company offer of the new scheme?
The reason why i'm puzzled what to do, is that i believe the last 3 years of the final salary scheme are important to your pension payment. Not sure whether thats an exclusive ruling to my own company, or whether thats the general situation for all final salary schemes.
My employment was reduced to part-time hours in November 2011. If the last 3 years are what your pension (final salary) is judged on then i currently stand at having 2 year 9 months at 100% contribution level, and 3 months contributions on my part-time hours.
Obviously if i let my pension carry on, that equation will reverse so that my last 3 years will be made up mainly of part-time contributions.
In general i'm unsure how the pension is calculated for final salary, and i'm looking to find if it would be in my best interest to freeze it a.s.a.p.
Any advice appreciated.
Yesterday i was dealt another blow when the company announced it will end our FINAL SALARY PENSION SCHEME in 2013. They are offering us another pension scheme, which whilst it looks o.k its obviously not going to be as good as the final salary scheme.
The advice i'm after, is should i freeze my final salary scheme immediately or continue until it ends in 2013, and then take the company offer of the new scheme?
The reason why i'm puzzled what to do, is that i believe the last 3 years of the final salary scheme are important to your pension payment. Not sure whether thats an exclusive ruling to my own company, or whether thats the general situation for all final salary schemes.
My employment was reduced to part-time hours in November 2011. If the last 3 years are what your pension (final salary) is judged on then i currently stand at having 2 year 9 months at 100% contribution level, and 3 months contributions on my part-time hours.
Obviously if i let my pension carry on, that equation will reverse so that my last 3 years will be made up mainly of part-time contributions.
In general i'm unsure how the pension is calculated for final salary, and i'm looking to find if it would be in my best interest to freeze it a.s.a.p.
Any advice appreciated.