Trying to take pension pot, 55+

t18con

Quick summary, i had a second stroke in February. I have not worked since, am currently claiming ESA and a small amount of Universal Credit. I am waiting on major surgery with major recovery time, and less than ideal chance of living to other side of operation and/or having a major stroke on the table.

I had several very small work pensions, spread around. I have claimed a pot on all those. I have received some and am waiting on others. There have been no issues except time.

I have a larger pension through a multi national company I worked for. On first contacting them, I got the impression the whole pension was based around retiring at pension age. They stated straight up I couldn't retire until my monthly pension payment equalled the state pension amount.

I contacted them a second time, but better explained why I was looking to take my pension pot early. The guy at the other end of the line said I would need to explain all to their medical people, and one would be in touch Monday or Tuesday.

In the meantime I contacted Citizen's advice, who told me the pension company could not withhold my lump sum, now that I'm 55+. I understood about tax, etc. Money now, to keep a roof over my head and food on the table is more important than money when I'm 67+

I contacted the pension company again today, to see why they hadn't been in touch. Again I couldn't talk to their medical people. Again I was told their medical people would be in touch, but this time by email. I was told the medical team would seek permission to get my medical files, to prove what i was saying, to contact GP for his thoughts, etc. before reaching a decision whether to pay out or not

I might not have time for this, in all honesty. I might never see the money I've paid for so long.

Where do I go from here? How do I speed the process up?

Many thanks in advance

El_Torro

Is the pension you are having trouble with a DB pension? Sounds like it is, if it was DC it would be a lot more straightforward. 

If you tell us what DB pension scheme you are in someone might be able to give more specific suggestions on what you can do to speed things up. 

Dazed_and_C0nfused

t18con said:

Quick summary, i had a second stroke in February. I have not worked since, am currently claiming ESA and a small amount of Universal Credit. I am waiting on major surgery with major recovery time, and less than ideal chance of living to other side of operation and/or having a major stroke on the table.

I had several very small work pensions, spread around. I have claimed a pot on all those. I have received some and am waiting on others. There have been no issues except time.

I have a larger pension through a multi national company I worked for. On first contacting them, I got the impression the whole pension was based around retiring at pension age. They stated straight up I couldn't retire until my monthly pension payment equalled the state pension amount.

I contacted them a second time, but better explained why I was looking to take my pension pot early. The guy at the other end of the line said I would need to explain all to their medical people, and one would be in touch Monday or Tuesday.

In the meantime I contacted Citizen's advice, who told me the pension company could not withhold my lump sum, now that I'm 55+. I understood about tax, etc. Money now, to keep a roof over my head and food on the table is more important than money when I'm 67+

I contacted the pension company again today, to see why they hadn't been in touch. Again I couldn't talk to their medical people. Again I was told their medical people would be in touch, but this time by email. I was told the medical team would seek permission to get my medical files, to prove what i was saying, to contact GP for his thoughts, etc. before reaching a decision whether to pay out or not

I might not have time for this, in all honesty. I might never see the money I've paid for so long.

Where do I go from here? How do I speed the process up?

Many thanks in advance

What type of pension is this?

It could be you have been dealing with DC pensions so far and this might be a DB pension.  Which are in some ways chalk and cheese. 

I have a larger pension through a multi national company I worked for

Exodi

El_Torro said:

Is the pension you are having trouble with a DB pension?

Dazed_and_C0nfused said:

What type of pension is this?

I think the OP effectively confirms it's a DB scheme when they said:

t18con said:

They stated straight up I couldn't retire until my monthly pension payment equalled the state pension amount.

Unfortunately I think the OP is at the mercy of their processes, I can't see how he could 'speed it up' if he's already made it clear why he intends to access it (aside from just calling and emailing them every day!).

I guess if they continue to get an unsatisfactory response, I guess next action might be speaking to The Pensions Ombudsman (though that's certainly not quick).

Dazed_and_C0nfused

Exodi said:

El_Torro said:

Is the pension you are having trouble with a DB pension?

Dazed_and_C0nfused said:

What type of pension is this?

I think the OP effectively confirms it's a DB scheme when they said:

t18con said:

They stated straight up I couldn't retire until my monthly pension payment equalled the state pension amount.

Unfortunately I think the OP is at the mercy of their processes, I can't see how he could 'speed it up' if he's already made it clear why he intends to access it (aside from just calling and emailing them every day!).

I guess if they continue to get an unsatisfactory response, I guess next action might be speaking to The Pensions Ombudsman (though that's certainly not quick).

Not a rule included in many DB schemes I don't think 🤔

FIREDreamer

Dazed_and_C0nfused said:

Exodi said:

El_Torro said:

Is the pension you are having trouble with a DB pension?

Dazed_and_C0nfused said:

What type of pension is this?

I think the OP effectively confirms it's a DB scheme when they said:

t18con said:

They stated straight up I couldn't retire until my monthly pension payment equalled the state pension amount.

Unfortunately I think the OP is at the mercy of their processes, I can't see how he could 'speed it up' if he's already made it clear why he intends to access it (aside from just calling and emailing them every day!).

I guess if they continue to get an unsatisfactory response, I guess next action might be speaking to The Pensions Ombudsman (though that's certainly not quick).

Not a rule included in many DB schemes I don't think 🤔

I suspect the issue might be that the DB early retirement pension is less than the GMP revalued to normal retirement date. I had this issue, eg early pension at age 55 = £2,300 but revalued GMP at 65 is £2,400 - retirement not allowed. A couple of years later I had early pension at age 57= £2,600 and revalued GMP at 65 is £2,400 - retirement allowed.

It’s to do with GMP, not the state pension.

Marcon

Dazed_and_C0nfused said:

Exodi said:

El_Torro said:

Is the pension you are having trouble with a DB pension?

Dazed_and_C0nfused said:

What type of pension is this?

I think the OP effectively confirms it's a DB scheme when they said:

t18con said:

They stated straight up I couldn't retire until my monthly pension payment equalled the state pension amount.

Unfortunately I think the OP is at the mercy of their processes, I can't see how he could 'speed it up' if he's already made it clear why he intends to access it (aside from just calling and emailing them every day!).

I guess if they continue to get an unsatisfactory response, I guess next action might be speaking to The Pensions Ombudsman (though that's certainly not quick).

Not a rule included in many DB schemes I don't think 🤔

Applies to pretty much any scheme which was contracted out on a GMP basis and the member has a GMP, albeit the scheme has used a simplified and thus not entirely accurate description - but that's a lot easier for a member to understand than trying to give them a crash course in the complexities of GMPs!

I suspect that this relates to a Guaranteed Minimum Pension which the scheme has to be able to pay at age 65 (assuming OP is male - otherwise 60 if female). In some cases, where the GMP represents a large part of the pension, this can restrict the amount of any tax free lump sum available (the CAB is wrong about not being able to withhold lump sums after someone reaches age 55 - I guess they believed it was a DC scheme. This is a scenario where a scheme certainly can) and/or the ability to take the benefits before the scheme's Normal Retirement Date.

OP, given how unwell you are, this is all horribly unwelcome. I'd get on to a trustee of the scheme rather than dealing with administrators. If they have a professional trustee, start with them; failing that, one of the member nominated trustees might be especially helpful to a fellow member, but any member of the trustee body should be able and willing to help. Their names will be listed in the scheme's report and accounts (ask the administrators for a copy, or you may be able to download from the scheme's website if it has one), or if it's a corporate trustee, it may have a name similar to the employer's name (eg XYZ Pension Trustee), in which case you can get the information from https://www.gov.uk/get-information-about-a-company

xylophone

https://techzone.abrdn.com/public/pensions/Tech-guide-guaranteed-min-pen  seems relevant.

Ill-health
In the event of the member's ill-health, a pension scheme can offer to pay benefits before the normal minimum pension age of 55. But if the benefits include GMP rights, they can only be paid out early on grounds of ill-health where the revalued GMP benefit promise from age 60/65 is covered.

If the member's life expectancy is less than a year, uncrystallised pension funds can generally be paid as a lump sum under the serious ill-health rules. Where GMP rights are involved, the amount of the lump sum depends on the member's marital status:

• Single - the full value of the GMP rights can be paid as a serious ill-health lump sum
• Married or in a civil partnership - the scheme needs to keep sufficient funds to provide the survivor's GMP. The balance of the value of the GMP rights, if any, can be paid out as a serious ill-health lump sum

t18con

Just about update on this, i believe it's a DB pension ( it's named NDB through WTW). 

To take a monthly payment, which i don't want to do, the monthly payment would be less than standard pension, which they won't allow.

To move money, which IS allowed, I need to have advice, since it's over 30k. The first person I spoke to , got figures off them, then said he couldn't help.

I tried to get around this by moving 29k,which they wouldn't allow.

So far, I can move it in theory, but need someone to tick box to say I've had advice.

The other option is to go through WTW'S system, let them contact my doctor, etc.

Things have moved forward on medical front, in that I'm being rushed for surgery next Monday. If I die on operating table, my 49k becomes £119 per month for my wife!

I need to read your replies again, but some things don't make sense, or are over my head

Marcon

t18con said:

Just about update on this, i believe it's a DB pension ( it's named NDB through WTW). 

To take a monthly payment, which i don't want to do, the monthly payment would be less than standard pension, which they won't allow.

To move money, which IS allowed, I need to have advice, since it's over 30k. The first person I spoke to , got figures off them, then said he couldn't help.

I tried to get around this by moving 29k,which they wouldn't allow.

So far, I can move it in theory, but need someone to tick box to say I've had advice.

The other option is to go through WTW'S system, let them contact my doctor, etc.

Things have moved forward on medical front, in that I'm being rushed for surgery next Monday. If I die on operating table, my 49k becomes £119 per month for my wife!

I need to read your replies again, but some things don't make sense, or are over my head

Have you contacted one of the trustees as I suggested? They should be willing and able to ensure you receive clarification.

t18con

That's in process now