The Real Choice for Early Leavers
Article Abstract:
Early leavers, meaning those who change jobs, have many decisions to make concerning pension plans. Often, this is not considered until after the job change. New legislation to improve the situation of the early leaver regarding pensions in the United Kingdom will be forthcoming soon. But improvements will be slow in coming as it will not be retroactive. Several options that the early leaver can consider include a refund of contributions, a deferred pension, a transfer payment to the new employer's pension plan and a buy-out annuity. Several questions should be considered prior to decision making. 1) Which pension plan has a higher rate of increase? 2) What if an employee leaves new employer after a few years? 3) How would dependents fare if he chooses one option or another. The employee should consider actuarial values under different circumstances. Concessions from authorities have made buyout a more appealing option. The member generally has to choose the insurance company in a buy-out and has several questions to consider about that. The early leaver's choice is complicated, even for the financially aware. Often, a trustee is requested for advice.
Publication Name: The Accountant
Subject: Business
ISSN: 0001-4710
Year: 1984
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Takeovers and Mergers - What about My Pension?
Article Abstract:
A major source of concern of employees involved in a merger or takeover of companies is the pension aspect. The law provides very little protection in this area, though it is felt that it is beneficial to the purchaser to provide for as fair and equitable solution as is possible. The possible arrangements that can be negotiated depend on the nature of their present scheme as well as that of the purchaser. Common practice allows for a Pensions Content of Sale Agreement which details information concerning past and future service benefits, temporary service and any relevant pension arrangements. The role of the pension fund trustee and some of the options available to him are discussed. In the case of past service rights, the new scheme is expected to provide equitable benefits, but is not always able to. In regards to future service rights, the employee really has no choice but to accept the new scheme.
Publication Name: The Accountant
Subject: Business
ISSN: 0001-4710
Year: 1983
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Proposals for Early Leavers' Rights Revealed
Article Abstract:
The Secretary of State for Social Services of the United Kingdom, Norman Fowler, called a special early leaver's conference in September 1983. Proposals for legislation concerning early leaver's pension rights were discussed and published in a paper at the end of November 1983. Job mobility is important to economic growth. Employees need to be protected from losses in switching pension schemes. Several proposals are listed.
Publication Name: The Accountant
Subject: Business
ISSN: 0001-4710
Year: 1983
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