...if you're in a final salary pension scheme.

Many of these are in deficit so, at some point, it's likely your employer may try to lure you off to an investment-based scheme. These are usually run by pension/insurance companies and the slick salesman will want their commission.

Your employer will probably try to sweeten the deal with some tax-free cash or a single 'bonus' into the pot.

Obviously, I'm not allowed to give financial advice, but almost everyone who is currently in a final salary scheme would be better off staying where they are. There's a risk, obviously, the company may go bust, as some already have, and you could end up with a much reduced pension or even nothing.

However, most people who move will get a lower pension with no link to inflation and no protection for their partner.

My advice, which I'm not allowed to give, is to not sign anything until you've taken advice - you could be losing shed-loads off your pension.

Yep, pensions are boring. So is a diet of beans on toast...

Sometimes you don't get a choice; the current proposed public sector pension reforms for example.

Described on the whole by the Government as unaffordable, in isolation the NHS final salary pension is actually £2bn in surplus (projected to drop to £1.8bn surplus by 2016). That surplus isn't ring-fenced. I wouldn't have a problem if was used to top up those public sector pension schemes currently in deficit. However, rather than going back into the NHS's general budget, it goes back to the Treasury.

Originally Posted by little_pob

Sometimes you don't get a choice; the current proposed public sector pension reforms for example.

Described on the whole by the Government as unaffordable, in isolation the NHS final salary pension is actually £2bn in surplus (projected to drop to £1.8bn surplus by 2016). That surplus isn't ring-fenced. I wouldn't have a problem if was used to top up those public sector pension schemes currently in deficit. However, rather than going back into the NHS's general budget, it goes back to the Treasury.

In the private sector would be illegal, money from pension schemes can't be used to prop up the business any more, don't know why its allowed in public sector.

In is that surplus including future commitments. Obviously its impossible to know how long people are going to live but in my company's scheme they have greatly had to increase project payout per person.