Executive Pension Plan

katsclaws

I'm a trustee of an Executive Pension plan for 2 directors. We're closing down our company to retire but haven't taken anything out of our pension plan yet. I'm now the main administrator of the Pension Scheme but would like to hand this over to another pension provider (not the one that currently invests the funds). Is this easy to do. ?

Malthusian

Is it a SSAS? If it is, the answer depends mainly on the assets of the scheme. If it holds commercial property or other illiquid assets it will be more difficult.

Do either of you have the right to take more than 25% tax free cash?

If you can, it would probably make sense to wind the scheme up and transfer the directors' benefits into two personal pension plans so they can do what they want with them. Obviously this is infeasible if there's a commercial property or other assets which can't be sold.

katsclaws

Malthusian, it's designated as an Executive Pension Plan. Nothing in commercial property or illiquid assets. Just monthly amounts or lump sums from business bank account. Husband has just started taking a former employer pension so has taken 25% tax free lump sum from that which has hopefully gone into our bank account today. EPP Scheme is paid up. Will it be expensive to transfer.? Husband has a very small Aviva personal pension plan which has paid out since age 55. Could he transfer his EPP to Aviva pension. ?
Not sure whether we can take more than 25% from EPP. Our EPP pension provider is not helpful when I talk to them. Thank you for your reply.

tony4147

Not sure about how easy to transfer, but be careful as I have a 'paid up' EPP and I'm able to withdrawn a 51% TFLS of what the pension was worth on 'A day' which was April 2006.
I've no idea how the figure of 51% came about but that is what I have in writing from Standard Life.

katsclaws

Thanks Tony. I obviously need to do more reading on our pension provider's website. Was it difficult to find out about this 51% TFLS from Standard Life.

tony4147

katsclaws wrote: »

Thanks Tony. I obviously need to do more reading on our pension provider's website. Was it difficult to find out about this 51% TFLS from Standard Life.

No, your pension provider should be able to tell you what the TFLS % is and the value of the pension on 'A' day.

I found out when I asked my IFA to review and look into moving my pensions, hence why I've left the EPP as is.

katsclaws

Thank you Tony. I only recently became the main administrator for our pension scheme as the pension provider had not even obtained a Pension Scheme Tax Reference.

xylophone

https://www.gov.uk/guidance/pension-administrators-wind-up-a-scheme

Does the above help?

katsclaws

Thanks xylophone. I've just read the information in that link.
Our scheme does not seem to have much flexibility. No spouse's pension. After age 65 if one of us dies the amount left in the deceased's pension fund is lost.

xylophone

Had you thought of consulting an IFA with expertise in pensions?

Currently a pension transfer specialist must have CF30 (customer function) and hold a qualification from:

G60 or AF3 (CII)
Pensions paper of Professional Investment Certificate (IFS)
Fellow/Associate of Pensions Management Institute
Fellow/Associate of Faculty of Actuaries


https://directory.moneyadviceservice.org.uk/en

katsclaws

Thanks xylophone, our pension was set up in the early 1990's by an IFA who was supposed to be an expert in pensions. He worked for one of the major banks (provider of our business account and pension) and then we moved our pension to his company when he left the bank. I will have a look at the link you have provided. Thank you for your help.