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<p>None - the fact that a pension scheme is in deficit does not mean that it cannot
pay the pensions which are currently in payment. A deficit simply means that the assets
currently held by the scheme are insufficient to meet the estimated cost of paying
<strong>all</strong> the scheme’s existing and future pension liabilities when they
fall due. In these circumstances trustees agree deficit repair contributions to eliminate
any deficit over an appropriate period with the sponsor, taking into account scheme
and employer circumstances.</p><p>In the unlikely event that a scheme has insufficient
assets to pay current pensions calculated under scheme rules, the sponsoring employer
must pay additional contributions into the scheme. If the sponsoring employer cannot
do so because it becomes insolvent, the Pension Protection Fund (PPF) is in place
to ensure that members receive an appropriate level of compensation.</p>
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