The Scheme is introducing a new option for members to consider when making their pension choices. You can already request a transfer of your Scheme benefits to another pension arrangement (subject to certain restrictions), e.g. to take advantage of pension flexibility. However, because the Scheme is a defined benefit pension scheme, this option may not be attractive as it would mean giving up a valuable level of predictability in your retirement income. The Financial Conduct Authority (FCA), Pensions Regulator and MoneyHelper have stated that it is in most people’s best interests to keep their defined benefit pension.
Recognising that some members may want a mix of some pension payable for life plus pension saving that can be accessed more flexibility, from 1 April 2023, when you claim payment of your pension, you may be able to request a partial transfer.
What is a partial transfer?
A partial transfer is a pension option that, subject to certain restrictions, allows you to transfer half of your Scheme benefits to another pension arrangement, and receive the rest as a pension income payable for life from the 91热爆 Pension Scheme. You may also be able to exchange some of the retained Scheme pension for cash lump sum. Depending on the rules of the receiving pension arrangement, you may then be able to flexibly access the amount transferred. Once the transfer has taken place the remaining balance of your 91热爆 pension will be put into payment and will be subject to an early payment reduction if you are below normal pension age.
Eligibility
To be eligible for a partial transfer you must be aged 55 or over and have a deferred Scheme pension with a transfer value of at least £60,000 (no more than half of which is in respect of any Guaranteed Minimum Pension (GMP)). The partial transfer option is offered at the discretion of the Trustee of the Scheme and the 91热爆, and the option may be withdrawn or varied at any time.
Timeline
You will need to take advice from an independent financial adviser before transferring to a defined contribution pension arrangement. Please note that pension transfers typically take 3-6 months to complete and the remaining half of pension that will be paid from the Scheme cannot start until the transfer is completed. This means that when the partial transfer pack is provided, it will not be possible to know for certain when your pension will start and the amount of Scheme pension quoted will be an estimate. Please bear this in mind if certainty on the date your Scheme pension starts and the amount is important to you, for example because you will be retiring from your current job. The Trustee will carry out certain checks before allowing a partial transfer application to proceed and if it cannot complete for any reason your pension will not start. You will then be able to either request another partial or full transfer pack, or request your full pension to be put into payment from a future date.
Pension Flexibility and Independent Financial Advice
The 91热爆 has put in place additional support to help eligible Scheme members consider their options including whether claiming payment of their deferred pension or transferring it to a defined contribution (DC) arrangement in order to take advantage of the flexibilities might better suit their particular needs. This includes independent financial advice funded by the 91热爆. Further details can be found here