On the home run...but Pension lump sum offered and on IPA

nervousandready

Hi, I was discharged from BR in 2015 and am still on an IPA until mid 2017. I have been contacted by one of my pension providers to say that the scheme is winding up and am being offered a lump sum payout (not huge but after sooo long without any spare money, would be so useful...)
I don't have much pension in place and frankly, the money now would be incredibly helpful. So I'd like to accept this. However, as I'm on an IPA, will they take it?
The OR did say that my various odds and sods of pension would not be touched / involved in my BR - so that suggests that as it is pension money, it is mine. However, does it stop being pension money when it is transferred to my account?
The other option is to leave it in the pot, and not be able to touch it (and the annual income it would provide is laughable).
Anyone have any experience of such a thing?
I'd rather be armed with some first hand experience on here before phoning the OR.

Bit more of any update: Since BR and discharge have made huge steps forward. The hardest part is the 3 year IPA, but am on the downhill stretch. I have been rebuilding and cleaning my credit files, and have just overtaken the national average credit score according to equifax - even with the BR still very much visibible. I got a credit card from Aqua and use it and pay off in full every month. Religiously, without fail. I am terrified of not fulling clearing it every month... They have increased my credit limit twice - which is not even reflected on my equifax score as they didn't have record of this card. So there is indeed life after BR and I'm very grateful for all the support I had from this forum during the darkest days (the days after making the decision the BR was the only option, and actually doing it). Once done, I felt so much better - knowing that there would be no more statements on debts I could no longer maintain. And I could start to rebuild - and I have. Thanks guys!

debt_doctor

Hi,
If you 'elect' to take your lump sum whilst under an IPA then it could well be claimed as a one off variation to your IPA.
You would be well advised to leave the money 'in the pot' or transfer the pot to another pension provider if the current provider is going to close the fund.
You can claim your lump sum (or indeed all of the pension) once your IPA ends.
Currently the law says that you cannot be forced to take the lump sum of a pension whilst bankrupt / subject to an IPA. I understand that this is to be appealed in the future.
DD

TheGardener

I would agree with DD - get it transferred into your current pension pot - if you don't have one - get one.