question about transferring a small defined pension pot

Tr21071958

Hi
I want to claim a small pension pot, but have just been told it is a defined benefit scheme, so the only way I can do this is to set up my own personal pension and transfer it.
As the reason for enquiring was to take a lump sum, I wondered if anyone knew if there were any time restrictions once I set a new pension up before I can claim the lump sum?

dunstonh

I want to claim a small pension pot

Are you over the age of 55?
When is the scheme retirement age?
what are the the scheme rules regarding early commencement if you are under the scheme retirement age?

so the only way I can do this is to set up my own personal pension and transfer it.

So, the administrators wont allow you to commence it then? is that them saying that or some third party?

Tr21071958

I am over 55, and have asked for all of the sum I have as a lump sum accepting that I would be taxed on 75% of it. The administrators of the pension have said I can only claim it as a lump sum if I transfer, which I will have to do myself.
I really just want to lmow if there are any clauses in new Personal pensions stopping me claiming my pot as soon as I have transferred it.

xylophone

Is the CETV greater than £30,000?

dunstonh

I am over 55, and have asked for all of the sum I have as a lump sum accepting that I would be taxed on 75% of it.

That option is not available on defined benefit schemes. It was an option brought in for defined contribution schemes.

The administrators of the pension have said I can only claim it as a lump sum if I transfer, which I will have to do myself.

That is correct.

really just want to lmow if there are any clauses in new Personal pensions stopping me claiming my pot as soon as I have transferred it.

There will likely be charges and statistically, doing what you want to do is likely to result in less money for you. Many receiving schemes may require an IFA to sign off on the transfer. This is due to the high risk of liability (you complaining later on that it was a bad thing to do) and the fact that around 9 out of 10 cases would see it classed as bad advice.

xylophone

See

http://2020trustees.co.uk/government-allows-db-dc-transfers/

http://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/transferring-your-pension

http://www.ftadviser.com/2015/03/23/ifa-industry/companies-and-people/another-provider-unveils-post-april-pricing-ANAJUYHMqJQJydqxvKaxEJ/article.html

sandsy

If you transfer it, you would need to make sure you transfer it to a provider who is facilitating total lump sum payments as they are not required to do so. You may also want to compare the charges of different providers for doing this as it's unlikely that they'll accept your money, set up the relevant pension contract and pay it out, all for free.