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My employer has gone into liquidation, what happens to my pension?

If your employer goes into liquidation, what happens to your pension?

You will either have a pension through the company that has now gone into liquidation, known as a company pension or a personal pension.

If you have a company pension do not worry because it normally is not an asset of the liquidated company and therefore, the liquidator will not be able to get his hands on it. In other words, your company pension does not belong to the company as an asset so it is protected for you. 

If you have a personal pension scheme then again, this is not a company asset and any liquidator has no rights over it.

What if my pension scheme is owed money from a company in liquidation?

Where a company goes into liquidation and there are unpaid contributions due to your pension policy, the Government provides a mechanism to recover these payments for your pension. 

You will be able to put a claim into the Redundancy Payments Service (Part of The Insolvency Service) for the amounts due. This process is done with the assistance of the Liquidator who will advise you of the process to claim the monies due and provide a special code number for your claim to be processed by The Redundancy Payments Service. 

In addition, The Pensions Protection Fund oversees any compensation payments to a member of an eligible pension scheme. Each separate pension scheme puts in place its own rules to define what will happen if a company using their scheme goes into liquidation. 

The Pension Protection Fund’s main function is to provide compensation to members of eligible defined benefit pension schemes, when there is a qualifying insolvency event in relation to the employer, and where there are insufficient assets in the pension scheme to cover the pension payments that should come out of the fund.


To arrange a meeting to discuss liquidation or your company’s situation call us on: 01527 839920 or email us on:

Added: 10 Nov 2016 10:02

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The Timothy James Partnership

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Insolvency Practitioners Association
About Us

We are an independent firm of specialist Licensed Insolvency Practitioners located in Bromsgrove, Worcestershire.

At The Timothy James Partnership, we work very closely with local businesses and professionals, providing guidance on formal insolvency procedures and advice on restructuring businesses.

We recognise that at times, companies find themselves in difficult financial circumstances and our aim is to provide practical solutions in these situations.