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Information and advice

If your workplace pension is being wound up, whoever runs it has to:

• inform you that the pension scheme has started to wind up
• provide the reasons for winding up the pension scheme (within one month)
• provide the name and address of a contact for further enquiries about the pension scheme
• provide information to members on a regular basis during the winding up process
• give advice to those affected

What then happens to your pension scheme will depend on why it has been wound up.

Your employer can’t afford to fund your pension

Your workplace pension’s funds are valued to make sure it can pay what its members expect.

If your employer stays in business but its workplace pension scheme is not in credit, then your employer must make up the shortfall.

When this shortfall has been met and the scheme has been wound up, your main options include:

• the workplace pension’s funds can be used to buy you a retirement income
• the value of your pension can be transferred to another pension scheme (for non-pensioners only)

Your workplace merges or is taken over

If your employer is merged with or taken over by another, then your new employer must:

• provide access to a replacement pension that meets or exceeds the government's new standards for workplace pensions
• give you details of this new pension scheme
• automatically enrol you into this new workplace pension if you're eligible
  

Pay in for less than two years

If you have paid into your workplace pension for less than two years then you may be entitled to a refund of your contributions. You should check with whoever runs your pension scheme.

Going out of business

If your employer goes out of business, its pension fund can't be used to its debts, so the fund is protected.

If there is a shortfall in the fund you may receive a smaller pension. In this case you may be eligible for compensation and help from the Pension Protection Fund (PPF) or the Financial Assistance Scheme (FAS).

Compensation and help

See 'Safety of workplace pension schemes' for information on how your workplace pension is protected.

• Safety of workplace pension schemes

More useful links

• What to do if your workplace pension scheme is closed or wound up

Useful contacts

• Money, tax and benefits contacts