Pension provider says cannot pay 25% lump sum?

Tracy2812 · 27 April 2015 at 3:32PM

Hi All,

My dad paid into a pension while he was working and then the company went into liquidation many years ago. Its all been sorted and he has been receiving a pension for a while now. We have asked about him taking 25% as a tax free payment but they say he cant do this? The scheme keeps changing names like they are going out of fashion every time there is a merger so we are not sure what information he should receive. I dont believe he has had any policy handbooks or paperwork in relation to how much his pension pot is worth such as an annual statement. The company is Rothsay Assurance Ltd prev Metlife Ltd. Are there certain pensions that cant pay a lump sum please?

Any help would be greatly appreciated, thank you.

sandsy · 27 April 2015 at 3:42PM

Generally, a lump sum can't be taken once a pension has commenced.

These companies looked like they specialised in buying out final salary schemes and providing the benefits themselves through deferred annuity contracts.

Tracy2812 · 27 April 2015 at 3:56PM

Hi Sandsy,

Thanks for your quick reply. Do you know if its possible to transfer this pension to another provider then or is he stuck with this one due to the circumstances of the company? Trying to find information on the normal pension websites is difficult as all they talk about is when your about to start claiming your pension. Would you suggest contacting Rothsay asking for any policy booklets etc? Thanks again.

molerat · 27 April 2015 at 4:01PM

Once a pension is in payment there are usually no options to take, the time for changing things has long passed. You can of course ask for information on the pension arrangements to ensure he is getting what he is entitled to.