Old Codger wrote:


Perfectly legal.

The company had to provide as much support (contribution) as necessary to
keep the final salary scheme afloat. With the downturn in the stock market
in recent years many companies have found the contributions crippling and
have closed their final salary schemes. The alternative in some cases might
have been a bust company and a bust pension scheme. Better to change the
scheme before that happens and everyone loses.

The financial advisor is probably suggested in order to try to ensure that
every contributor to the existing pension scheme receives "best advice" on
the subsequent pension arrangements - join the new scheme or make your own
arrangements, what to do with the contribution from the current scheme, etc.
The company may pay the financial advisor or he may not charge. In the
latter case he would make his money from the pension he arranged for you.
Worth investigating how he is funded and what, if anything, you would have
to pay.


The only advice (and the company has been clear to point out that this
is not, in fact, advice) is to either (A) take out a new personal
pension and transfer the fund to that. Even though they state they do
not give advice, they helpfully provide an illustration from a (I
assume) favourable (to themselves in the form of commission???) pension
company. Or you can apply to them and have a new illustration drawn up
showing what might happen if you transfer this fund to the companies
current (not final salary) scheme - the very fact that this is not the
default action makes me think they _want_ you to take out the new
scheme. Or you can hire your own advisor. They have helpfully provided
three incomprehensible forms to help you through this. There has never
been the offer of a free financial advisor or any guidance from the
company or its financial advisors about what is best. The employees
basically must DYOR (for better or worse), pay for advice or guess
what's best.


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