21st April 2017 Anne-Marie Winton comments in Pensions Expert on FKI scheme wind up
Trustees of the defined contribution FKI Group Pension Plan have agreed to wind up the scheme, transferring active members to a mastertrust, as experts note governance and cost management benefits.
Anne-Marie Winton commented that information on how to go about winding up a DC scheme set up under trust, like the FKI Group Pension Plan, is set out in its governing trust deed and rules.
She explained that this document “will typically give the trustees power to transfer out DC pots with the members’ consent to a suitable receiving scheme or schemes, with the DC pots for non-consenting and/or deferred members being secured with an annuity”.
She added further that the active members of the FKI Group scheme may not immediately notice much difference when they transfer their DC pot into the new Brush Mastertrust, because both offer funds with Legal & General.
“But as to whether the fund choices for active members and the contribution rates will be identical is another matter, and members may want to take the opportunity to revisit their investment selections and find out whether pensions freedoms, such as flexi-drawdown, are now available to them.”
Read the full article in Pensions Expert here
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