# pension after redundancy



## oscarbandit0 (25 Jan 2009)

I have a pension taken out wiht standard life through my work place.  I was made redundant last may.

What do i do about my pension? It was worth a miserable 20,000 (after 8 years) last april god knows what it is worth now.

Do I have to contact the pension company?

What do people normally do in this situation?

Thank you


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## StevieC (27 Jan 2009)

Normally when you leave service with a company you are given a leaving service options letter which lays out your options, generally these are;

1) Take a transfer value to your new employers revenue approved pension scheme.

2) Transfer your fund to a Personal Retirement Bond or PRSA in your own name.

3) Leave the funds with Standard Life as a deferred benefit.

What people do in this situation varies on what type of pension scheme they were in to begin with (Defined Benefit or Defined Contribution) and also what their current circumstances are.

Your first port of call would be to get in touch with Standard Life to find out your options now, what type of scheme it was and the value of the fund now. After that, I'd advise to seek the advice of a reputable independent broker to see what the best course of action now for you is.


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## LDFerguson (27 Jan 2009)

I'm assuming in this reply that your Standard Life pension is an Occupational Pension Scheme ("Company Scheme").  

You have three choices: - 

(1) Leave it in the current scheme, where it will continue to be invested, then draw your benefits at retirement.  You will need to contact the scheme trustees when you want to retire, which will require you to keep track of them in the meantime.  

(2) Transfer it to another Occupational Pension Scheme if you are/become a member of another one.  Check up on charges and fund choices on both sides before deciding to do this.  

(3) Transfer to a Personal Retirement Bond ("Buy Out Bond") with a provider of your choice.  You choose the provider and the fund and have control over the investment of the pension fund thereafter.  If you do this, you no longer have to maintain contact with the scheme trustees.  Again, check up on charges and fund choices on both sides before deciding to do this.


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## LDFerguson (27 Jan 2009)

Post crossed with Stephen.


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## StevieC (27 Jan 2009)

Great minds think alike


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## BOXtheFOX (4 Feb 2009)

Where a person is in a defined benefit pension and takes a redundancy package leaving his company pension as a deferred pension. He then tops up his pension with part of his redundancy payment. Is this usually used to top up his defined benefit pension or is the new sum set aside as a defined contribution with a life of its own?


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## StevieC (4 Feb 2009)

Depends on the scheme. Last thing you want is that the top up goes into the main pot for everyones benefits though. Make sure any top up went into an AVC in your own name so that it is ringfenced for you.


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## BOXtheFOX (4 Feb 2009)

Thanks StevieC. I understand that it is ringfenced but I was concerned that it was accepted as a defined contribution rather than a defined benefit.


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## StevieC (4 Feb 2009)

it would mostly likely be on a DC basis unless you specifically bought years service towards your DB pension.

Regards

Stephen


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