How Can I Take Early Benefits From Group Retirement Benefit Scheme?

MyRubyRed

Hi All, I'm looking for some help. My husband recently found paperwork relating to a pension with a previous employer. Its taken absolutely ages to confirm that he still has benefits under the scheme but when he has asked about the value, his options to take benefits early and a copy of scheme rules for reference, the trustees have said that they now only pay early on grounds of ill health and have sent nothing else.
Is there anyway we can transfer the value (when we find out what it is) to something else which will allow us to take benefits now. Husband is 51 and we believe pension is probably worth only around £16k. Would rather have lump sum now than wait till retirement age.
Any help appreciated:rolleyes:

dunstonh

You could transfer it to a personal pension and commence benefits but that is likely to involve a significant loss of money.

MyRubyRed

Is that because I'd have to pay penalties or transfer fees?

dunstonh

The occupational pension needs to protect other members and early withdrawal from the occ scheme would be penalised in some way. Plus the occ scheme has a number of benefits which cannot be matched by personal schemes.

If the transfer value is £16k, then you are only looking at £4000 lump sum and £360 a year income. At age 60, that could be worth over £1500 a year in the occ scheme.

MyRubyRed

Thanks Dunstonh, I know its not much but a lump sum now would be very very useful. However we wouldn't be prepared to take a massive loss to get it now.