Company closes final salary pension scheme to new employees.
Company final salary scheme members find out that their fund is greatly under-performing.
Who is responsible for the final salary fund shortfall, and in order to pay out on those pensions, who makes up that shortfall?
thedude,
As far as I'm aware the employer has to make up the shortfall. This is why they're all pulling out of FS schemes as the burden/risk is all on them and not on the employee.
If the company is sold or goes out of business I don't know what happens to the pension scheme. The only good thing about the money purchase scheme is that if your company goes out of business no one apart from you can get their hands on your pension contributions.
No doubt, only when MP's and their fat final salary pension schemes are threatened, will we see protective legislation.
A long time coming I fear. Our First Minister in Scotland was thrown out over misconduct after only doing less than 2 years and had walked away with a pension of £32,000 for the rest of his life.
Nice if you can get it though.