Unitised Pension Scheme

Sconnybotland

I wonder if anyone can assist?


I recently contacted Scot Widows re. a dormant With Profits Uni Pension, with a view to me potentially taking 25% of this out as cash. (I am 55). First of all, they have advised me that this is not possible with this type of policy as the whole fund has to be settled at the same time.


However, they also advise that it would be possible to transfer the benefits held under the policy to another type which would allow this. As par for the course they have advised that I contact an IFA!


My concern is that if I do so, how much will I lose by transferring this, any ideas? Its not a huge policy, £37k plus a £15K terminal bonus.

kidmugsy

Sconnybotland wrote: »

I recently contacted Scot Widows re. a dormant With Profits Uni Pension.

Is this through the old FSSU scheme?

Sconnybotland

kidmugsy wrote: »

Is this through the old FSSU scheme?

:eek:
Sorry, I dunno what that means ?

dunstonh

First of all, they have advised me that this is not possible with this type of policy as the whole fund has to be settled at the same time.

Correct. Providers are working to 2014/15 rules. The new rules do not come in until April 2015. it is expected that most legacy pensions will require transfers to plans that do allow it.

However, they also advise that it would be possible to transfer the benefits held under the policy to another type which would allow this. As par for the course they have advised that I contact an IFA!

That fits with expectation.

My concern is that if I do so, how much will I lose by transferring this, any ideas? Its not a huge policy, £37k plus a £15K terminal bonus.

Depends on the terms of your policy. Compare the current value and the transfer value as that is one way to tell.

Do be aware that a lot of older SW plans have guaranteed annuity rates (they were one of the last to stop issuing them) and your use of the term dormant suggests old (dormant isnt a term that applies to pensions).

Sconnybotland

dunstonh wrote: »

Correct. Providers are working to 2014/15 rules. The new rules do not come in until April 2015. it is expected that most legacy pensions will require transfers to plans that do allow it.



That fits with expectation.


Depends on the terms of your policy. Compare the current value and the transfer value as that is one way to tell.

Do be aware that a lot of older SW plans have guaranteed annuity rates (they were one of the last to stop issuing them) and your use of the term dormant suggests old (dormant isnt a term that applies to pensions).

When I say dormant, I have not been paying anything into this policy for around 15 years