Originally Posted by maxq
pb4uski, no need to flame. I'm merely curious why they'd offer the better deal. :-)
From looking at this the reason you are being offered more money is because you are switching from a pension to an insurance annuity. They pay the insurance company the money and that is the end of their obligations. If they keep you as a pension as interest rates and life expectancy changes pension expense changes and they are looking to eliminate pension expense from their income statement.
This means with your lower than limit payments to the pension guarantee fund your government guarentee is less valuable and they are offerring a 10% premium to entice you and hold up in court in case the annuity goes up in flames.
By the way you were right to wonder why the company is doing this, that is critical thinking necessary to make sure you are not missing an angle. Companies for the most part hate difficult questions or being honest on how the company is doing by implementing this plan.