UK - The reasons companies give for closing final salary schemes should be reviewed to guard against legal claims from employees, lawyers warn.
Hammond Suddards Edge solicitor Oliver Rees said that in light of union activism over pensions closures, many money purchase scheme members are querying employers over the past closure of their defined benefit plan.
He warned: “These issues are being raised to trustees with or without evidence. Schemes should be prepared for these queries and not risk facing a legal dispute.”
He added that if a firm was taken to the pensions ombudsman over a past scheme closure, the case will be looked upon more favourably if the employer had been proactive in reinvestigating the reasons before issues were put to trustees.
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