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  1. #1

    Wound up pension fund

    In 1992, I left a company with whom I had a defined benefits pension scheme. I was offered a choice of benefits that I could take from the pension. I opted for a pension of 4000 to be taken from when I reached my 65th Birthday. This was made up of about two thirds Guaranteed Minimum Pension. I have a "Pension Membership Certificate" from Norwich Union (as was) confirming this agreement

    Since leaving, the pension scheme has been wound up and I have received letters telling me that my benefits from the scheme are fairly trivial amounts.

    My question is, does my agreement from Norwich Union still stand despite the winding up of the pension scheme, or am I going to be forced to accept the trivial amounts that are now being offered.

  2. #2
    If the scheme was in deficit when it was wound up, then benefits will have been reduced accordingly if the employer was insolvent at the time and the scheme didn't qualify for entry to the Pension Protection Fund.

  3. #3
    Thanks for the response. The company has continued to trade. Does that mean that there was not a deficit?

  4. #4
    Is it a section 32 scheme?

    If so then they will still need to honour the GMP.

  5. #5
    There is nothing in any of the paperwork suggesting that it is a section 32 buyout. The letter from Norwich Union is entitled "PensionMembership Certificate" and the first line states "The following benefits have been preserved for you within the scheme. They are based on information supplied by the Trustees, and insured by Norwich Union.

  6. #6
    If the company was solvent when the pension scheme was wound up, they would need to have paid in enough cash to ensure the benefits could be 'bought out' in full.

    Could you give any more info about the choices given to you in 1992; the date when the scheme was wound up; where the benefits are now (i.e. with which insurer); and the 'trivial sums' you are being offered - how much/who is sending you the letters?


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