Michelin pension release help please !

garyb999

hi, iv'e just been told ,i can not have all of my Michelin company pension.i am 57 and finished work from another company, due to redundancy and ill health.i worked for 16 years in the 70s and 80s at the above and had the pension frozen when i left.it is a substantial amount and have been told if transfered i will only get 25% of it .is this true.has anyone any advice or help as i think this is out of order.

dzug1

Are you sure that's what you've been told?

Sounds more likely that you've ben told you can have 25% of it as a lump sum, the rest funding an annual pension.

atush

Is this old pension a Final salary pension or a money purchase pension?

Generally the 25% as mentionned above is the tax free lump sum- which you may not want to take a if you dont the pension is higher.

dunstonh

iv'e just been told ,i can not have all of my Michelin company pension.

You shouldnt have just been told that. The rules have been in place for generations (bar tweaking here and there).

have been told if transfered i will only get 25% of it .is this true

On the basis oftransferring it to a money purchase pension then yes. However, we dont know the context of what you were told.

i think this is out of order.

Can you clarify what you think is out of order as it isnt clear what you dont like.

garyb999

dunstonh wrote: »

You shouldnt have just been told that. The rules have been in place for generations (bar tweaking here and there).



On the basis oftransferring it to a money purchase pension then yes. However, we dont know the context of what you were told.



Can you clarify what you think is out of order as it isnt clear what you dont like.

i have been told i can not have or release this pension early and and i would have to wait until im 66 for the company to pay out any pension at all.ive asked a financial advisor to look into it and the above was his reply,but he could transfere 25% to give me some income but loose the 75% still in there.help !

dunstonh

i have been told i can not have or release this pension early and and i would have to wait until im 66 for the company to pay out any pension at all.

If it is a final salary scheme and the scheme age is 66 and only allows earlier retirement subject to trustee approval then that is allowed. It will be in the scheme booklet you received when you signed up for the pension. You could ask them for a scheme booklet to verify what it says in early retirement. Administrators dont make up rules as they go along. They are printed and disclosed and have to be followed unless there is legislative change.

ive asked a financial advisor to look into it and the above was his reply,but he could transfere 25% to give me some income but loose the 75% still in there.help !

You dont lose the 75%. That is what is used to provide an income. A similar situation occurs on the occupational scheme.

garyb999

many thanks for the swift replies.
the information you have given me is greatly appreciated.its nice to know there is good advice to be had on this great forum.
thanks again...:)