To manage the legal issues associated with closing a DB (Defined Benefit) scheme to future accrual
Representing members’ interests and keeping them informed
When the sponsoring employers informed us that they wanted to close their DB scheme to future accrual, we sought legal advice on whether there was a ‘Courage Case’ problem with the scheme’s amendment power. This was an important issue for our members because it would decide whether the scheme’s link to final salary could be broken when it closed to future accrual.
Next, we started negotiating with the sponsoring employer about members’ future benefits. We also ensured that all communications sent to our members were clear and accurate.
At the end of the consultation period, we ensured that there was time allocated to consider members’ comments and make any necessary amendments to the final proposal