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  • FIRST POST
    • benidorm59
    • By benidorm59 6th May 18, 6:55 PM
    • 131Posts
    • 39Thanks
    benidorm59
    Cashing in a Company Pension
    • #1
    • 6th May 18, 6:55 PM
    Cashing in a Company Pension 6th May 18 at 6:55 PM
    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
Page 1
    • Silvertabby
    • By Silvertabby 6th May 18, 7:07 PM
    • 3,246 Posts
    • 4,670 Thanks
    Silvertabby
    • #2
    • 6th May 18, 7:07 PM
    • #2
    • 6th May 18, 7:07 PM
    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
    • By Brynsam 6th May 18, 7:23 PM
    • 1,568 Posts
    • 1,138 Thanks
    Brynsam
    • #3
    • 6th May 18, 7:23 PM
    • #3
    • 6th May 18, 7:23 PM
    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
    • By benidorm59 6th May 18, 7:27 PM
    • 131 Posts
    • 39 Thanks
    benidorm59
    • #4
    • 6th May 18, 7:27 PM
    • #4
    • 6th May 18, 7:27 PM
    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
    • By Dox 6th May 18, 7:28 PM
    • 936 Posts
    • 718 Thanks
    Dox
    • #5
    • 6th May 18, 7:28 PM
    • #5
    • 6th May 18, 7:28 PM
    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
    Originally posted by benidorm59
    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
    • By benidorm59 6th May 18, 7:32 PM
    • 131 Posts
    • 39 Thanks
    benidorm59
    • #6
    • 6th May 18, 7:32 PM
    • #6
    • 6th May 18, 7:32 PM
    He is not ill maybe that the case then the Pension is Rolls Royce
    • Brynsam
    • By Brynsam 6th May 18, 7:33 PM
    • 1,568 Posts
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    Brynsam
    • #7
    • 6th May 18, 7:33 PM
    • #7
    • 6th May 18, 7:33 PM
    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
    • By Brynsam 6th May 18, 7:37 PM
    • 1,568 Posts
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    Brynsam
    • #8
    • 6th May 18, 7:37 PM
    • #8
    • 6th May 18, 7:37 PM
    He is not ill maybe that the case then the Pension is Rolls Royce
    Originally posted by benidorm59
    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
    • By dunstonh 6th May 18, 8:59 PM
    • 94,495 Posts
    • 62,444 Thanks
    dunstonh
    • #9
    • 6th May 18, 8:59 PM
    • #9
    • 6th May 18, 8:59 PM
    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?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • xylophone
    • By xylophone 7th May 18, 12:31 PM
    • 26,488 Posts
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    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
    • By benidorm59 7th May 18, 4:42 PM
    • 131 Posts
    • 39 Thanks
    benidorm59
    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?
    Originally posted by xylophone
    Yes and a statement what the pension would be
    • xylophone
    • By xylophone 8th May 18, 8:38 AM
    • 26,488 Posts
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    xylophone
    Is it the Trustees who have to agree to the early access to the pension and the Trustees who have to make an additional payment?
    • benidorm59
    • By benidorm59 8th May 18, 10:20 AM
    • 131 Posts
    • 39 Thanks
    benidorm59
    Is it the Trustees who have to agree to the early access to the pension and the Trustees who have to make an additional payment?
    Originally posted by xylophone
    Brilliant thank you will explain it to her due to visit for a cuppa this morning
    • Brynsam
    • By Brynsam 8th May 18, 10:37 AM
    • 1,568 Posts
    • 1,138 Thanks
    Brynsam
    Brilliant thank you will explain it to her due to visit for a cuppa this morning
    Originally posted by benidorm59
    The trustees can't make an additional payment; it would have to come from the employer (if extra money is needed). Rather than explaining the wrong thing to your friend, get her to contact the scheme administrators or ring TPAS for help (make sure she has the papers with her when she calls): https://www.pensionsadvisoryservice.org.uk
    • xylophone
    • By xylophone 8th May 18, 11:25 AM
    • 26,488 Posts
    • 15,728 Thanks
    xylophone
    Brilliant thank you will explain it to her due to visit for a cuppa this morning
    I was asking a question as to whether that is what the letter from Bentley meant rather than suggesting that it was the case!


    You say that the letter came from Bentley - is he actually a deferred member of the Rolls Royce and Bentley Pension Fund rather than the (amalgamated) Rolls Royce Scheme?


    https://www.hartlinkonline.co.uk/rrbpf/hopl.chi/wui/homepgui.html

    https://www.rolls-roycepensions.com/Homepage

    You say that the letter from Bentley (who at Bentley?) said that the early payment was dependent on the agreement of the Trustee(s) and the payment of additional contributions into the Fund.

    But who was to make those contributions and why?


    You say that the pension was deferred over twenty years ago.

    Did the husband leave Bentley in 1998?

    Or just leave the pension scheme and remained and is still employed by Bentley?

    Does he have a statement of deferred benefits?

    If he is no longer employed by Bentley and hasn't been for twenty years I don't quite see why they should be required to make a payment to the pension fund/scheme either?
    • Brynsam
    • By Brynsam 8th May 18, 1:29 PM
    • 1,568 Posts
    • 1,138 Thanks
    Brynsam
    I was asking a question as to whether that is what the letter from Bentley meant rather than suggesting that it was the case!

    Originally posted by xylophone
    I think this is a lost cause - too many wires getting crossed to make it sensible to try and answer here.
    • benidorm59
    • By benidorm59 8th May 18, 5:56 PM
    • 131 Posts
    • 39 Thanks
    benidorm59
    I was asking a question as to whether that is what the letter from Bentley meant rather than suggesting that it was the case!


    You say that the letter came from Bentley - is he actually a deferred member of the Rolls Royce and Bentley Pension Fund rather than the (amalgamated) Rolls Royce Scheme?


    A deferred member of the RR and Bentley Pension

    https://www.hartlinkonline.co.uk/rrbpf/hopl.chi/wui/homepgui.html

    https://www.rolls-roycepensions.com/Homepage

    You say that the letter from Bentley (who at Bentley?) said that the early payment was dependent on the agreement of the Trustee(s) and the payment of additional contributions into the Fund.



    But who was to make those contributions and why?


    This she doesn't understand she assumed her husband

    You say that the pension was deferred over twenty years ago.

    Did the husband leave Bentley in 1998?

    Yes he left was made redundant

    Or just leave the pension scheme and remained and is still employed by Bentley?

    Does he have a statement of deferred benefits?

    Yes they sent one with that letter

    If he is no longer employed by Bentley and hasn't been for twenty years I don't quite see why they should be required to make a payment to the pension fund/scheme either?
    Originally posted by xylophone
    She brought the letter and it states its all subject to the company so i am assuming it depends if the trustees agree and the company pays these extra contributions
    Why cant the pot he has now just be used, Thanks for her help so far. She has tried ringing Bentley was told he will have to apply and see
    • Dox
    • By Dox 8th May 18, 7:27 PM
    • 936 Posts
    • 718 Thanks
    Dox
    She brought the letter and it states its all subject to the company so i am assuming it depends if the trustees agree and the company pays these extra contributions
    Why cant the pot he has now just be used, Thanks for her help so far. She has tried ringing Bentley was told he will have to apply and see
    Originally posted by benidorm59
    At long last...trustee consent needed for early retirement, company consent needed for enhanced early retirement (i.e. paid without some sort of reduction because it is being paid early).

    If company consent isn't forthcoming he may be able to take his benefits, but the starting level will be reduced to reflect the early payment. Depends entirely on the rules of the scheme, which is why people here won't be able to tell you the answer.
    • xylophone
    • By xylophone 9th May 18, 11:59 AM
    • 26,488 Posts
    • 15,728 Thanks
    xylophone
    If he can log in here

    https://www.hartlinkonline.co.uk/rrbpf/hopl.chi/wui/homepgui.html

    he might be able to access the Scheme Members' Booklet/Scheme Rules.
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