A few pension queries..

averageguy11

Any help from the following would be appreciated..it mainly revolves around pending divorce and my desire to start taking pension benefits when I am 50 in less than 2 years time..i hav a sipp and a contracted out policy with CIS in there with profits fund

1.Can i take inc drawdown without taking my 25% cash sum until a later date?

2.Can a pension or part of one be transferred to (ex) b4 divorce.

3. Are there any problems in transferring a protected rights policy (CIS)

4. Any problems in cashing in a protected rights policy under the ''nonminal pension rule'' under 15k in the pot and 60.

5.Can income be taken from a protected rights policy under inc drawdown.

Thanks in anticipation.

dunstonh

1.Can i take inc drawdown without taking my 25% cash sum until a later date?

No

2.Can a pension or part of one be transferred to (ex) b4 divorce.

No. Pension sharing order documents need to be sorted first.

3. Are there any problems in transferring a protected rights policy (CIS)

No. Although you cannot transfer into a full SIPP.

4. Any problems in cashing in a protected rights policy under the ''nonminal pension rule'' under 15k in the pot and 60.

Not if you qualify (its 16k this year).

5.Can income be taken from a protected rights policy under inc drawdown.

Yes. Using an insured pension contract you can.

averageguy11

Thanks for the reply...very useful.

Couple of follow ups ..
Do u happen to know what the figure for ''nominal pensions'' will be in 2009?
Whats an insured pension contract
Finally..pension sharing order?

Thanks in advance

dunstonh

Do u happen to know what the figure for ''nominal pensions'' will be in 2009?

Trivial commutation is the term. It is set to be 1% of the lifetime allowance. Lifetime allowance will be 1.7 mill or 1.8mill depending on which side of the tax year you do it.

Whats an insured pension contract

In very simple terms it is where the pension provider controls the master trust and all the admin in house. Typically these are your stakeholder and personal pensions. Post A day products are now appearing that form a middle ground between insured pensions and SIPPs which give the best of both worlds on the most popular consumer options. You get the investment funds choice that is typical on many SIPPs (the fund supermarket style) but the ease of contract that the personal pension has and the small witholding tax advantage. These products can do drawdown with protected rights but at this time Self Invested contracts cannot.

Finally..pension sharing order?

Thats the term used when the court will allow the transfer of part/all of a pension to the spouse. It is known as a pension sharing order. The receiving scheme or existing scheme (if it isnt being transferred) will need this before they can change the pension. It is only granted by the court.

EdInvestor

Useful website

http://www.sharingpensions.co.uk/

averageguy11

Thanks for your reply.

As regards to the trivial commutation..its ''our'' intention to transfer just enough from one/two pensions to make this possible for my ex to be able to take advantage of this rule