FAS Top Up

outofoakes

I was a member of a pension scheme which went into administration some years ago and is now with Legal & General as a deferred annuity. The scheme is covered by FAS which I understand will top up my pension to 90% of my expected pension at my normal retirement date. I have recently requested a transfer value from L & G with a view to transferring it to a SIPP with HL. but I wondered what would happen to the top up should I move it into my SIPP?

westv

The way I understand it, the amount you receive from L&G and the amount you receive from the FAS are separate so transferring the L&G figure to a SIPP will have no affect on the FAS figure.

Linton

westv wrote: »

The way I understand it, the amount you receive from L&G and the amount you receive from the FAS are separate so transferring the L&G figure to a SIPP will have no affect on the FAS figure.

Agreed. FAS operates as a competely separate pension with its own Ts&Cs.

xylophone

http://www.pensionprotectionfund.org.uk/FAS/howfasworks/Pages/AmIEligible.aspx

With regard to the deferred annuity, have you confirmed with HL that they will accept a transfer?

Are there any "safeguarded benefits" and if so, what is their value?

outofoakes

I understand they are two separate pensions but the FAS element will be based on the value of my L & G pension at retirement age so the more my L & G increases in value, if indeed it does, the less FAS will contribute. I am not sure how this is calculated should I transfer to a SIPP.
I have not yet check with HL if they will accept this transfer as at this stage I am just trying to determine my options and what will be more beneficial. The value is less than £30k so no safeguarded benefits if I understand that requirement correctly.

Linton

As I understand it both your deferred annuity and your FAS pension were fixed and guaranteed when the old scheme was wound up so neither will increase in value except for inflation.