Pension scheme amendments
In most cases, the terms of a pension scheme may be amended. Details regarding the power of the employers and trustees to amend a scheme are generally specified in the scheme’s trust deed and rules and are summarised in the member’s booklet.
Often, an employer has the power to amend a scheme, but the consent of the trustees may be required in order to exercise this power.
A scheme may be amended because an employer wishes to change the benefits provided. An employer may in certain cases wish to improve the benefits provided by the scheme, however scheme amendments often reflect difficulties in maintaining the level of funding required to support the existing benefits provided by the scheme, and result in a reduction in benefits or a closure of the scheme to new members or cessation of future benefits for existing members.