how can i get my lump sum and transfer the rest

mikkyg

hi,
i am new to this so please bare with me.
i have a differred pension which has transfer value of 97k,this was from a final salery scheme from when i worked in the print.i can take this pension from 50(i am now 51) and a lump sum or so i thought.when i applied for my lump sum i was informed i could not take it as i had not got enough in the pot and the trustees would have to replenish this to bring it back up to the GMP they would not allowed me to take my lump sum on the basis that this would be detrimental to the other members.i can understand this as they need to look at the needs of the majority.what i am trying to understand is that if i am going to transfer out of the scheme why can they not give me my lump sum when i transfer the rest out,surely as they are looking at the benefit to all the other members and me transfering out would reduce the burden on the scheme why can i not just transfer out and take my cash lump sum?

dunstonh

what i am trying to understand is that if i am going to transfer out of the scheme why can they not give me my lump sum when i transfer the rest out,surely as they are looking at the benefit to all the other members and me transfering out would reduce the burden on the scheme why can i not just transfer out and take my cash lump sum?

The transfer value will be (significantly) reduced compared to it's "real" value. So, they protect other members that way.

Also, you can't transfer it and commence it either as you lose the protected scheme age on transfer and would revert to current pension legislation which has a minimum age of 55.

mikkyg

thanks,
is there any other way i can release some of the cash,i have been offered a 8k incentive to transer into a SIPPs but i am unsure if this is the best place to put it.i also have a stakeholder pension with around 20k in it would it be better to transfer it all into this.

dunstonh

is there any other way i can release some of the cash

no.

the rest of it cant answer as its too specific and no facts known. Chances are the answer would be no to that as well though. 99 times out of a 100, its best not to transfer defined benefit schemes.

Loughton_Monkey

If you are in a final salary scheme, you should understand that it is virtually impossible to transfer out. Reason? Because it loses you heaps of money. So the FSA only allows it in the very few cases where professional advice claims it is to your advantage. Almost certainly that won't apply to you.