Workplace pensions
Protection for your pension
How your pension is protected depends on the type of scheme.
Defined contribution pension schemes
If your employer goes bust
Defined contribution pensions are usually run by pension providers, not employers. You will not lose your pension pot if your employer goes bust.
If your pension provider goes bust
If the pension provider was authorised by the Financial Conduct Authority and cannot pay you, you can get compensation from the .
Trust-based schemes
Some defined contribution schemes are run by a trust appointed by the employer. These are called 鈥榯rust-based schemes鈥�.
You鈥檒l still get your pension if your employer goes out of business. But you might not get as much because the scheme鈥檚 running costs will be paid by members鈥� pension pots instead of the employer.
Defined benefit pension schemes
Your employer is responsible for making sure there鈥檚 enough money in a defined benefit pension to pay each member the promised amount.
Your employer cannot touch the money in your pension if they鈥檙e in financial trouble.
You鈥檙e usually protected by the if your employer goes bust and cannot pay your pension.
The Pension Protection Fund usually pays:
- 100% compensation if you鈥檝e reached the scheme鈥檚 pension age
- 90% compensation if you鈥檙e below the scheme鈥檚 pension age
Fraud, theft or bad management
If there鈥檚 a shortfall in your company鈥檚 pension fund because of fraud or theft, you may be eligible for compensation from the .
If you want to make a complaint about the way your workplace pension scheme is run, read .