We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Private pension fund going to be cashed in by OR

I went BR in 1993 and OR took details of my personal pension plan. I knew that an attachment had been made on the plan and so it has come as no surprise to receive a letter asking if I want buy back the plan from the OR. The non protected part of the plan has around 26K in it now and the OR wants 45% of this from me if I wish to buy it back. There is no way I can afford this so it seems in 12 months time (my 50th birthday the OR will 'cash in' my plan, take the 25% cash lump sum and the next 5 years payments.

My questions are:
1) It has been 15 years since my BR - surely the debts would have been written off by the companies concerned - the biggest debtor is no longer in existance!, so what happens to the money if there is a surplus?

2) The protected rights cannot be touched but as the OR is in effect cashing in all of the policy do I have to buy an annuity or whatever with the protected part of the plan or can I keep it going until I wish to redeem it?

Many thanks in advance for any advice given.

Comments

  • DON79
    DON79 Posts: 3,842 Forumite
    just doing a little bump up on this in case someone can help, sorry I can't but someone may have the expertise required.
    BSC #215/No.1 Jan 09 Club
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.3K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.