pension scheme wind-up

[TomTomTom]

I am taking a final salary pension. What happens to it if the company providing it goes bankrupt and closes the scheme ?

[dzug]

The scheme has its own assets and investments and is in many respects independent of the company.

The pension scheme can still continue to operate as a closed scheme and will pay out as near to the defined benefits as it can afford. With no company behind it this gets more difficult as time passes.

Alternatively I believe it is possible to wind up the scheme and pay out the value of its investments to the members. You can't spend the money in this instance - you'd have to put it into a personal pension.