Originally Posted by
The Mixmaster
Actually a defined benefit pension is administered by Trustee's and it is they who hold the responsibility for day to day running of such a pension. DB pension law states that deficit is addressed via funding proposal from Trustee's or ultimately by the employer. IAG has multi billions in cash reserves, where do you think management want to deploy these cash reserves...pension for loyal, hard working employee's or maybe just maybe they are incentivised via bonuses to reduce employee cost!
There is no legal issue that stops IAG closing their DB pension, after all many other companies have already done so. In this day and age nobody should expect pension arrangements to remain cast in stone - FWIW I have a letter from the DWP stating that I have paid in enough years of contributions to get a full State Pension - well I had until the Government changed the rules and now I dont have enough years.
So its up to the individual to make sure that they have enough saved for a pension, nobody else. Instead of spending $1000 on new iphone buy a new android for $250 and invest the difference - you will then reap the benefits in years to come and you can still make phone calls in the meantime. .