Cashing in a Company Pension

benidorm59

My friends husband phoned up and asked if he could start drawing his frozen company pension.
they said this may be possible subject to

Agreeing to the early retirement as requested by the Trust Deed and Rules and
Paying additional contributions into the fund

Now he understands that the Trust would have to agree to pay the pension but why would he have to put more money in. Its been frozen for about twenty years.

Does anyone have any idea how much he would have to put in, he doesn't want to apply if its all going to be taken back and they will not give him any answers just apply if he wants it

Silvertabby

Does anyone have any idea how much he would have to put in, he doesn't want to apply if its all going to be taken back and they will not give him any answers just apply if he wants it

I'm sorry, but without the benefit of a crystal ball there's absolutely no way anyone on these boards can answer that question!

Your friend's husband will have to ask his pension provider for more details.

Brynsam

I think he may have misunderstood. Suggest he asks the scheme to put an early retirement quote in writing - he doesn't have to accept it if he doesn't want to.

benidorm59

They have sent him a letter with figures for retirement this year, and the two clauses. He wants to accept it but is a loss to why he should have to pay some money in

Dox

benidorm59 wrote: »

They have sent him a letter with figures for retirement this year, and the two clauses. He wants to accept it but is a loss to why he should have to pay some money in

That sounds odd. What does the letter say and what is the scheme? Who are the administrators who handle the day to day admin?

Is he hoping to draw his pension on grounds of ill health? If so, that could be subject to the employer (not the member) paying in additional funds if he qualifies for some sort of enhanced benefit.

benidorm59

He is not ill maybe that the case then the Pension is Rolls Royce

Brynsam

Few pension schemes have rules which permit them to accept contributions from deferred members. He needs to go back to the scheme and ask what they're on about. Might be they've simply cut and pasted the wrong bit of text into the letter.

Brynsam

benidorm59 wrote: »

He is not ill maybe that the case then the Pension is Rolls Royce

It would be really helpful to know the exact wording the scheme has used.

They have an excellent website members can log in to - might be worth his while having a look at that, or just calling the scheme on Tuesday.

dunstonh

My friends husband phoned up and asked if he could start drawing his frozen company pension.

Frozen has a specific meaning. Is it actually frozen?

xylophone

Is your friend a deferred member of the Rolls Royce Pension Scheme?

That the pension would be reduced for early payment is pretty well standard but it seems strange that he has been asked to contribute to a scheme of which he is no longer a member.

What exactly did the letter from the Trustees say?

Has he obtained a new state pension statement?

benidorm59

xylophone wrote: »

Is your friend a deferred member of the Rolls Royce Pension Scheme?

Yes

That the pension would be reduced for early payment is pretty well standard but it seems strange that he has been asked to contribute to a scheme of which he is no longer a member.

What exactly did the letter from the Trustees say?

The letter was from Bentley they said they would refer it to the trustees to see if it was possible to draw it
quote


Agreeing to the early retirement as requested by the Trust Deed and Rules and
Paying additional contributions into the fund

Has he obtained a new state pension statement?

Yes and a statement what the pension would be