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Protecting a Workplace Pension - Fleximize

Protecting a Workplace Pension

How can I protect and manage my workplace pension?

By Marcia Smith

There are several ways in which you can ensure that your workplace pension is protected and these will vary depending on the type of pension you have.

Who runs your pension?

Firstly, check who runs your pension. This will usually not be your employer, but a separate pension provider. If so, your pension will be fully protected in the event that your employer goes out of business. You should also check that your pension provider is authorized by the Financial Conduct Authority. If they are, this means that if they get into financial difficulties and can’t pay your pension when you retire, you will be eligible for compensation from the Financial Services Compensation Scheme.

Pension Protection Fund

If you’re in a defined benefit workplace pension scheme, you will be covered by the Pension Protection Fund. In most cases, this will fully protect your pension payments if you’ve already retired, or 90% of your pension if you’re below your scheme’s pension age. The Pension Protection Fund can also intervene in the event of any theft or fraud by the organisation running your pension.

Worried about your pension?

If you’re concerned about how your pension is being managed, you should contact the Pensions Advisory Service or the Pensions Ombudsman.

In most cases you won’t need to actively manage your pension arrangements, but you should keep an eye on your annual statement, which will tell you how much you have accumulated. You can also ask for an estimate of how much you’ll receive when you retire. If you lose track of any pension, contact the Pension Tracing Service for assistance.