Winding Up (Wound Up) – Pensionfinder
This is the term used when an occupational pension scheme is closed, and is usually achieved by transferring the scheme members pension benefits to an individual pension arrangement. This can be done by buying an annuity for each member or a deferred annuity if they are still working. Another way pension schemes are wound up is to move all of its assets and liabilities into another pension scheme. Companies usually decide to wind-up their pension scheme because they can’t afford the necessary contributions or are insolvent. It may also happen after a corporate merger or take over.