RE: Pension liabilities20 May 2019 07:50
Any employee with a DC pension owns their own pot, it’s theirs even if the company should cease to exist, it just means all company contributions stop.
If it’s a DB pension that’s another story. The tax payer has nothing to do with it, nor does the government. If certain criteria are met, the PPF will accept the DB scheme, but for high earners and contributors such as pilots, it is devastating. Final salary pensions of perhaps £60k plus will become around half that, with tax free lump sums hugely reduced too. This was the case for Monarch pilots yet to take their DB pension. Unlike British Midland pilots, they received no additional compensation. The government isn’t interested as the PPF isn’t government owned, it’s self sustaining and has no connection to the tax payer. I’m not sure if a DB scheme is in play here and I hope it isn’t.