What happens if a pension company goes bankrupt

highgiant1985

I've a private sector defined contribution pension that I've been paying in to for several years.

I understand if the company I work for goes under my pension is safe still as contributions have been paid over already.

However, I'm wondering what the impact is if the pension company went under as unlikely as that may be.

From searching online I found the UK position on this https://www.gov.uk/workplace-pensions/protection-for-your-pension

I'm assuming its something similar in Ireland?

ANXIOUS

Henry Ford III wrote: »

Investor compensation scheme benefits would apply.

https://www.investorcompensation.ie/

I think it's 90% of any loss up to a maximum payment of €90k.

The above is incorrect, you should delete it and find out what would actually happen.

TiGeR KiNgS

highgiant1985 wrote: »

I've a private sector defined contribution pension that I've been paying in to for several years.

I understand if the company I work for goes under my pension is safe still as contributions have been paid over already.

However, I'm wondering what the impact is if the pension company went under as unlikely as that may be.

From searching online I found the UK position on this https://www.gov.uk/workplace-pensions/protection-for-your-pension

I'm assuming its something similar in Ireland?

Your pension fund assets are separate from the Pension Company.
If the Pension company goes bankrupt the creditors have no legal claim on the fund assets.

TiGeR KiNgS

Henry Ford III wrote: »

Investor compensation scheme benefits would apply.

https://www.investorcompensation.ie/

I think it's 90% of any loss up to a maximum payment of €90k.

This post should be deleted as it was posted by someone without a clue.

TiGeR KiNgS

TiGeR KiNgS wrote: »

This post should be deleted as it was posted by someone without a clue.

Welcome to boards.ie.

dulux99

The pension fund is separate from the company's assets. The funds are sitting in a trust kept totally separate from the company. The company can not get at the pensions funds.

Henry Ford III

ANXIOUS wrote:

The above is incorrect, you should delete it and find out what would actually happen.

I believe it is correct.

What do you believe might happen if an insurer or other pension provider went bust?

Henry Ford III

TiGeR KiNgS wrote:

This post should be deleted as it was posted by someone without a clue.

Same question to you. What would happen in the event of the pension provider defaulting?

ANXIOUS

Henry Ford III wrote: »

I believe it is correct.

What do you believe might happen if an insurer or other pension provider went bust?

I've no interest in correcting you, the only reason I replied and reported the post is because it's so incorrect it could cause panic if people Google this query and get your incorrect reply.

You linked to the investor Compensation company, which was set up under the Investor Compensation Act 1998.

If you'd like to understand how wrong you are read the Act and the only two mentions of pensions or retirement funds is that they are excluded.

After reading this please edit your post.

Henry Ford III

This place is for discussion isn't it?

Phileas Frog

ANXIOUS wrote: »

I've no interest in correcting you, the only reason I replied and reported the post is because it's so incorrect it could cause panic if people Google this query and get your incorrect reply.

You linked to the investor Compensation company, which was set up under the Investor Compensation Act 1998.

If you'd like to understand how wrong you are read the Act and the only two mentions of pensions or retirement funds is that they are excluded.

After reading this please edit your post.

I would like to know what the actual position is please and thank you. Without any smart answers if you wouldn't mind.

Squatter

Phileas Frog wrote: »

I would like to know what the actual position is please and thank you. Without any smart answers if you wouldn't mind.

Then, instead of asking on a site where any half-witted eejit can post whatever gibberish they wish, why not ask the experts?

https://www.pensionsauthority.ie/en/

ANXIOUS

Henry Ford III wrote: »

This place is for discussion isn't it?

It is a place for discussion, but you've put across incorrect information as fact rather than saying you don't know.

ANXIOUS

Phileas Frog wrote: »

I would like to know what the actual position is please and thank you. Without any smart answers if you wouldn't mind.

In terms of an occupational DC pension scheme?

Henry Ford III

ANXIOUS wrote: »

It is a place for discussion, but you've put across incorrect information as fact rather than saying you don't know.

I said it was my understanding/view. I'm not a god however and have been known to be incorrect the odd time.

If you have a contrary view please say what it is.

Henry Ford III

Squatter wrote: »

Then, instead of asking on a site where any half-witted eejit can post whatever gibberish they wish, why not ask the experts?

https://www.pensionsauthority.ie/en/

There's nothing on that regarding "default" or "compensation".

I will chase this up tomorrow and provide a better qualified answer.

dulux99

Henry Ford III wrote: »

I believe it is correct.

What do you believe might happen if an insurer or other pension provider went bust?

A company dc scheme is not similar to either of the aforementioned examples.

I'll reiterate my point - a pension scheme is held in a trust which is kept totally separate from the company's assets. This is the answer, there is no discussion to be had on the matter.

Skihunta13

dulux99 wrote: »

A company dc scheme is not similar to either of the aforementioned examples.

I'll reiterate my point - a pension scheme is held in a trust which is kept totally separate from the company's assets. This is the answer, there is no discussion to be had on the matter.

Ok how do you access your pension if your point of contact or pension company no longer exist?

dulux99

Skihunta13 wrote: »

Ok how do you access your pension if your point of contact or pension company no longer exist?

The trustees of the scheme have an obligation to get in touch with all members or they face prosecution. They'll typically enlist the services of a professional pension consultancy firm in this case and organise for everyone to be set up with personal policies with Irish life etc.

jimmy456

dulux99 wrote: »

A company dc scheme is not similar to either of the aforementioned examples.

I'll reiterate my point - a pension scheme is held in a trust which is kept totally separate from the company's assets. This is the answer, there is no discussion to be had on the matter.

What happens if your pension is an insurance contract with one of the insurance companies? I thought these contracts are kept on balance sheet so if the insurance company went bust your pension would go with them?

ANXIOUS

Henry Ford III wrote: »

I said it was my understanding/view. I'm not a god however and have been known to be incorrect the odd time.

If you have a contrary view please say what it is.

No you didn't you literally said "Investor compensation scheme benefits would apply."

Shocking that a so called professional would spout this type of scare mongering.

Henry Ford III

Nice burn 😂

ANXIOUS

Henry Ford III wrote: »

There's nothing on that regarding "default" or "compensation".

I will chase this up tomorrow and provide a better qualified answer.

Any closer to the better qualified answer?

Phileas Frog

ANXIOUS wrote: »

In terms of an occupational DC pension scheme?

Yes

Henry Ford III

ANXIOUS wrote: »

Any closer to the better qualified answer?

Yep.

I'll post my qualified view after you post yours

ANXIOUS

Henry Ford III wrote: »

Yep.

I'll post my qualified view after you post yours

Now that you know you're wrong can you please delete the incorrect information you've posted and I'll edit them from my replies?

Henry Ford III

ANXIOUS wrote:

Now that you know you're wrong can you please delete the incorrect information you've posted and I'll edit them from my replies?

Please stop trying to back seat mod.

coylemj

dulux99 wrote: »

I'll reiterate my point - a pension scheme is held in a trust which is kept totally separate from the company's assets. This is the answer, there is no discussion to be had on the matter.

'No discussion' you say! What about we discuss the late Robert Maxwell and how he plundered the assets of his companies' pension funds?

myshirt

Henry Ford III wrote: »

Please stop trying to back seat mod.

He is right though. What you have posted is dangerous. You are not even wrong. You are horribly, horribly wrong. A one handed face palm is not even enough. Two hands are needed. It's at times like this I am extremely fearful of the control Google has. Everyone seems to think they are an expert if they have access to Google. You are so horribly wrong it doesn't even bare attempting to explain it to you. Just know that if you haven't a clue what you are talking about, you shouldn't post so vociferously. I wouldn't do it for areas I'm clueless in, and others wouldn't either.

You are way wide of the mark.

Henry Ford III

It's not "dangerous". Don't be silly.

ANXIOUS

Henry Ford III wrote: »

It's not "dangerous". Don't be silly.

Can you not see the danger of posting incorrect information? You say you've the answer, so just correct what you've previously said.

Could cause people a lot of undue stress if they see your answer rather than the correct answer.

Henry Ford III

ANXIOUS wrote:

Could cause people a lot of undue stress if they see your answer rather than the correct answer.

Well then and as previously suggested, why not present your view?

dulux99

Jesus lads. I've posted the correct information twice now. I specialise in this subject for a living.

ANXIOUS

dulux99 wrote: »

Jesus lads. I've posted the correct information twice now. I specialise in this subject for a living.

Agreed, that's why I don't engage with him and try never reply to any topic he posts on. Never gives a straight answer, still surprising that a financial advisor won't correct the record.

I can nearly imagine him onto a broker consultant in Aviva or Irish life asking them for the answer yesterday.

Phileas Frog

Can someone answer the question please. Ye are like bloody women

saccades

Phileas Frog wrote: »

Can someone answer the question please. Ye are like bloody women

The funds cannot be accessed by the bankrupt firm and cannot be used to pay off debts once the firm has folded. There will be a set of qualified people appointed by the trustees to move everyone and their funds to another pension company.

Henry Ford III

ANXIOUS wrote:

Agreed, that's why I don't engage with him and try never reply to any topic he posts on. Never gives a straight answer, still surprising that a financial advisor won't correct the record.

You outdid yourself here in that case. I think it's to do with you getting pwned on a few threads over a period.

Little wonder you're Anxious

ANXIOUS

Henry Ford III wrote: »

You outdid yourself here in that case. I think it's to do with you getting pwned on a few threads over a period.

Little wonder you're Anxious

At least it's been deleted, now you go back and make your millions selling mortgage protection cases.

Leave the complicated stuff to the experts.

dulux99

Phileas Frog wrote: »

Can someone answer the question please. Ye are like bloody women

I already have. Twice.

Henry Ford III

ANXIOUS wrote:

Leave the complicated stuff to the experts.

Like you

Wanderer78

highgiant1985 wrote:

However, I'm wondering what the impact is if the pension company went under as unlikely as that may be.

Ah you ll be grand, it would be bailed out