threat to pensions from a private equity takeover

[Gary55]

Hi just wondered if we were bought out by a dodgy new owner or private equity firm would our pensions be safe

[mw7485]

The company has no direct access to the scheme assets. One thing we have Maxwell to thank for.

[Gary55]

At least that's something

[RobertT]

What we already have via RM pensions shouldn't really change. But going forward is anyone's guess.

The current schemes:

The RMSPS is paid for by the government/taxpayer.

The RMPP pension element is the trustees responsibility, but the DBCBS shows on RM's balance sheet and it's up to the company to ensure that money is paid out.

The RMDCP is administered by Scottish Widows and an individuals pension value is determined by how much goes in and the success of the investments chosen.

What about the future under a private equity firm, etc:

The proposed CDC plan will be similar to the RMPP. Trustees in charge of the pension, RM pays the lump sum. But with an expected cost of around £400 million per year, will that happen, or if it does how long will it continue for?

The alternative would be an individual DC scheme similar to the RMDCP. Legal minimum contributions are only 3% employer, 5% employee. That would potentially cut RM's pension bill by over 75%.

Worst case scenario is we all get made self employed and then there's no compulsion for an employer to provide a pension at all.

[Gary55]

thankyou that was my fear .

[Doris' Dad]

Yes, indeed. Thank you Robert.

[mags999]

the way things are going everything could go tits up including are new pension scheme especially if we come out as winners in the current industrial unrest

[freespeech]

the way things are going everything could go tits up including are new pension scheme especially if we come out as winners in the current industrial unrest

Not sure anyone will come out as winners.