BT Retirement fund

AD22

Hi

I am an ex BT employee and a member of their Retirement Plan which is being wound up. I have been offered 3 options:

- opt for a buy out contract , which I am told is an insurance policy with Standard Life
- transfer to a new pension arrangement ( i am working and contributing to a company pension scheme)
- take the transfer value in cash ( I am a higher rate tax payer and not sure what the tax liability will be on the balance 75% which is taxable)

My initial thoughts were to go with Option 1, but are there any upsides to going with 2 or 3.

A bit confused! Any advice appreciated.

thanks

molerat

You will be liable for tax on the 75% at the rate appropriate to you, so 40% (minimum), is the cash option less than £18K ? So option 1 or 2, will your company pension allow transfers in ?

dunstonh

- opt for a buy out contract , which I am told is an insurance policy with Standard Life

It is actually a pension policy. However, it is more specialist one that is designed to retain some of the benefits that can exist on the occ scheme (to keep the description simple).

1 or 2 are likely to be the best options but it would depend on the terms offered on the section 32 buy out bond.

AD22

molerat wrote: »

You will be liable for tax on the 75% at the rate appropriate to you, so 40% (minimum), is the cash option less than £18K ? So option 1 or 2, will your company pension allow transfers in ?

I just checked my company will not allow transfers into the pension scheme, is a SIPP a good choice?

Goldwing1

I'm a BT pensioner. Which scheme is being wound up?

dunstonh

is a SIPP a good choice?

If it meets your requirements and is better for you than the alternatives then yes. if not, then no.

(cant really say more than that due to lack of info).