CIS Pension, adivce needed please

SheronP

Hi All,
One of the pension's that I pay into, a CIS pension scheme I took out in 1983 (if that makes any sense), when I signed up for it they said I can take some money out when I reached 50 if I wanted to.
I reached 50 in July (they changed the rules in April),I've been having some finanicial difficulties as well so I was looking forward to receiving some of this, but when I approached CIS they said to me that I cannot get it again, that I have to wait until I am 55 because of the changes at April.

What I want to know is, what rights do I have to get money out?
I still have the original contract stating that I can take money out when I'm 50 but I don't know what avenue to take.
Your advice would be greatly appreciated.:D

dunstonh

What I want to know is, what rights do I have to get money out?

None.

Plus, at no point have you had any rights to take all the money out. Just 3 times the annual annuity until 2006 then it changed to 25% of the transfer value.

I still have the original contract stating that I can take money out when I'm 50 but I don't know what avenue to take.

The rule change was not CIS. It was the Government. The change in legislation overules the contract. There is usually a disclaimer in there somewhere that it's subject to legislation.

Most CIS pensions of that era have guaranteed annuity rates that kick in at age 60. Whilst the plans are typically obsolete, the guarantees are valuable. So, holding on until you qualify for the guarnatees is logical.

gobezza

Have to agree with previous reply, the change wasn't made by CIS, it was the dreaded government.

SIPP the fund and invest for yourself, that's my moto.....

dunstonh

SIPP the fund and invest for yourself, that's my moto.....

Its an RAC not a PPP. So, chances are it will have guarantees on it. A guaranteed annuity is the most likely but some older RACs have guaranteed minimum fund values at maturity. Where these exist, a SIPP would be an awful choice.

I saw one recently where the person had bought in to the pro SIPP media and luckily he asked me to check it over first. The SIPP would have needed to grow by 75% just to pay the same amount as the RAC. Totally unrealistic.