DC Pension Schemes Wind-Up

Challenges for companies with DC schemes

·          Increased regulation and responsibilities

·          Increasing implicit and explicit costs

·          Exposure to risk of future claims & trustees’ personal liability

·          Many schemes offer no benefits over personal pension arrangements

What solutions exist?

There are several ways to remove the burden of operating a DC scheme:

·          Appoint professional trustees

·          Outsource administration, auditors, accountants & legal services

·          Close the scheme to future contributions and wind-up the trust under which the pension benefits are held.

Wind-up can reduce ongoing costs and absolve your exposure to risk

Why good advice is essential?

Winding-up a scheme incorrectly can lead to the possibility of future claims against your company or the trustees. 

We will help you to avoid this by upholding the following principles:

·          Acting in the best interests of the members.

·          Planning an effective member communication strategy to make sure the members fully understand the process.

·          Achieving a win for the employer, members and trustees.

The Wind-Up Process

Alexander Forbes Financial Services has a specialist team to deal with the wind-up of occupational money purchase pension schemes.  Our team consists of highly qualified financial advisers and technical consultants with specialist knowledge.

The process is complicated and will involve different stages depending upon your situation.  The basic structure is as follows:

For more details, please download our DC Wind Up Brochure. 

If you would like to get in touch, please contact Stephen Coates, Associate Regional Director at 020 8253 7882 or email CoatesS@aforbes.co.uk