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Can't take Pension Lump Sum. Is this right?

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  • xylophone
    xylophone Posts: 45,633 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 5 May 2015 at 10:11PM
    It's a Prudential pension and now I have just found out it is managed by trustees who wont consent to the lump sum withdrawal.
    The OP seems to have (or have had) an occupational Money Purchase Scheme which had protection of a scheme specific lump sum greater than 25%?

    I imagine that he is entitled to a lump sum and an annuity as offered in the original terms of the Scheme?

    The Scheme does not offer a lump sum and drawdown?

    That said, if the value of the pension is really under £15,000, despite the scheme specific lump sum protection, he might be able to request a transfer out but lose the scheme specific protection?

    I am not at all familiar with this type of arrangement - maybe Aegis http://forums.moneysavingexpert.com/member.php?u=201192 could throw some light? The OP might try a pm to him?
  • xylophone
    xylophone Posts: 45,633 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Scottish equitable

    Try contacting Aegon to ask about your pension options.

    https://www.aegon.co.uk/index.html
  • dave8204
    dave8204 Posts: 60 Forumite
    Part of the Furniture 10 Posts Combo Breaker Debt-free and Proud!
    edited 5 May 2015 at 10:35PM
    I know it's really frustrating,I'm trying to make sense of 3 different kinds of pension myself and what I can and can't do,but you really need professional advice when it comes to this sort of thing.The recent changes have made things "simpler" but as you and I have found that's a long way from "simple".
    Basically if your provider won't let you take the whole lot as a lump sum you have the option to transfer to someone who will.However there are pensions and pensions and individual circumstances and wants/needs also vary massively. Most,if not all,providers will insist you take advice from an IFA before accepting transfers from a Final Salary pension no matter how much thought you've put into things.I suspect this is because for most these pensions are a very good deal and not least they're looking ahead and not particularly wanting to be on the end of potential mis-selling litigation a few years down the line.I have good reasons for wanting to cash in a couple of pensions and shifting the proceeds into ISAs gradually to avoid a tax hit but Hargreaves Landesdown won't accept either unless I consult an IFA.I'm fully aware of what I'm doing , the various implications etc given my fairly unusual circumstances so I find the thought of paying someone money purely to ignore what they'll advise quite galling,but that's the way it is.
  • 100
    100 Posts: 30 Forumite
    Part of the Furniture Combo Breaker
    stoddy2k01 Please start your own thread and not hi-jack others.

    dave8204. I agree with what you say. It's mad. My tiny pension is only under £15K Pension pot. I have a final salery pension plus the state which I'm living on. I thought I'd be able to treat my seriously ill wife to a little comfort before it was too late but the pension company doesn't see it that way. As you say, it's frustrating.
  • 100
    100 Posts: 30 Forumite
    Part of the Furniture Combo Breaker
    xylophone wrote: »

    I am not at all familiar with this type of arrangement - maybe Aegis http://forums.moneysavingexpert.com/member.php?u=201192 could throw some light? The OP might try a pm to him?

    Thankyou Xylophone.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    100 wrote: »
    I don't know if I do have any GAR.
    Just in case you didn't know, GAR stands for Guaranteed Annuity Rate. Those are usually higher than open market annuity rates but lower than deferring the state pension. AGRs largely ceased to be offered around the year 2000 so you probably don't have one if it started after that.
    100 wrote: »
    It's a Prudential pension and now I have just found out it is managed by trustees who wont consent to the lump sum withdrawal.
    If it is AVC money then as of 6 April 2015 you have a legal right to transfer to another scheme. You already had that right if it was non-AVC money purchase pension.

    The trustees don't have to allow the use of the new freedoms, if they don't, the solution is to transfer.

    If they refuse to allow both the general freedom to take the money and to allow a transfer, ask for specific details of what sort of scheme it is and what the basis for refusing is so that we can comment on those.
  • xylophone
    xylophone Posts: 45,633 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Hargreaves Landesdown won't accept either unless I consult an IFA.I'm fully aware of what I'm doing

    If you are trying to transfer a Final Salary Pension with a CETV greater than £30,000 , HL don't have any choice?

    See

    http://www.wragge-law.com/insights/pension-reforms-are-you-ready-part-2/
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 24 May 2015 at 2:13PM
    The advice is required but it's not required to follow that advice.

    There are a number of providers who will accept DB transfers of more than £30,000 after an IFA has advised against the transfers and a number who won't accept DB transfers of £30,000 at all. The FT had a 1 May 015 story on this, "Fears over 'new dawn' for final salary pension transfers". For example, AJ Bell will take under £30,000 and over £30,000 against adviser advice while Prudential won't take either.

    HL chooses not to accept over £30k without the support of an IFA (won't go against advice) but will take up to £30,000 without advice.

    For convenience, here's a list of providers who'll take over £30k against advice: Aegon, Aviva, AJ Bell, Canada Life (case by case decision), Dentons (case by case decision), Friends Life. Of those only AJ Bell and Canada Life will accept transfers of up to £30,000 without advice.

    As usual the remedy is to pick the provider which offers the service that you want.
  • xylophone
    xylophone Posts: 45,633 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If it is AVC money then as of 6 April 2015 you have a legal right to transfer to another scheme. You already had that right if it was non-AVC money purchase pension.

    We don't have enough information - but from what the OP has said, he seems to have a Money Purchase Occupational Scheme Pension with protected lump sum - perhaps Aegis will comment at some point.

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/primary_protection/tax_free_protection/
  • xylophone
    xylophone Posts: 45,633 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The advice is required but it's not required to follow that advice.

    http://www.thisismoney.co.uk/money/pensionfree/article-3069332/Thousands-savers-locked-pensions-freedom-revolution.html
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