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.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Pension transfer/payoff quandry?
surfnlurk
Posts: 109 Forumite
Hi, I'd like to invite comment and advice for an unusual situation.
I have a frozen pension with a full cash equivalent transfer value (C.E.T.V) of £7548, however the company has under funded the scheme and has done several deals with the pensions watchdogs as follows.
a) the scheme is now closed to new members from 2000
b) no transfers out are allowed
c) initial times/dates for the company to fully fund the scheme have been extended by several years due to the company stating it would bankrupt them.
Recently the company has offered to pay off members inorder to save money I presume. My offer is as follows.
a) A reduced C.E.T.V of £981 which must be paid to a registered pension fund.
b) Plus a cash offer of £5057 to use as I wish.
c) Still waiting clarification from HMRC about tax situation on cash offer.
d) Leaves a shortfall from full C.E.T.V
Bearing in mind the state of British aerospace industry and more and more production switching to China, I wonder will the company be around to see my final pension date - should I therefore take the money and run?
If I do, should the cash offer be invested as an AVC into my present pension (also aerospace) or into a bond/investment portfolio?
Comment/advice please
I have a frozen pension with a full cash equivalent transfer value (C.E.T.V) of £7548, however the company has under funded the scheme and has done several deals with the pensions watchdogs as follows.
a) the scheme is now closed to new members from 2000
b) no transfers out are allowed
c) initial times/dates for the company to fully fund the scheme have been extended by several years due to the company stating it would bankrupt them.
Recently the company has offered to pay off members inorder to save money I presume. My offer is as follows.
a) A reduced C.E.T.V of £981 which must be paid to a registered pension fund.
b) Plus a cash offer of £5057 to use as I wish.
c) Still waiting clarification from HMRC about tax situation on cash offer.
d) Leaves a shortfall from full C.E.T.V
Bearing in mind the state of British aerospace industry and more and more production switching to China, I wonder will the company be around to see my final pension date - should I therefore take the money and run?
If I do, should the cash offer be invested as an AVC into my present pension (also aerospace) or into a bond/investment portfolio?
Comment/advice please
0
Comments
-
Is is a final salary or defined contribution scheme?0
-
Final salary. Not sure if the company I worked for still has an open scheme which makes it even more of a concern.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards