any cash option for old pension scheme windup?

C

chanel

Guest
Any advice on following much appreciated:
I was in a pension scheme for about 4 years between 1989-93 approx when company changed hands, lost job and was told pension scheme was being wound up. Basically forgot about it (I know I know!) until contact was made with me just recently to say I had a transfer value of about 11k and that wound up is only now in final stages. I am now 49.
The only realistic option being offered by trustees to me is to tranfer this amount into a personal retirement bond (consensus) fund with Irish Life.
Am already in pension scheme with present employers and they will not I'm pretty sure accept any transfer in.
Anyone know if there is any cash option available with this type of bond (I'm thinking I'll be 50 next year) and if so any restrictions if I choose that route. Thank you.
 
You could take early retirement from age 50 (depending on your old pension scheme rules) and you could take a tax-free lump-sum at early retirement (how much tax-free would depend on your salary when you elft that employer).

I would suggest that you ask the trustees to provide you with a full range of options in relation to early retirement at age 50.
 
chanel said:
The only realistic option being offered by trustees to me is to tranfer this amount into a personal retirement bond (consensus) fund with Irish Life.
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You don't have to take this option and can shop around for your own buy out/pension retirement bond and should do so in order to get the best deal on charges.
Am already in pension scheme with present employers and they will not I'm pretty sure accept any transfer in.
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Why not? If it's an occupational scheme then I thought that they were obliged to facilitate such transfers? Of course whether or not such a transfer or a BOB/PRB is the best option depends on charges and other issues such as fund selection etc.
 
They are only obliged to take a 'statutory' transfer value - poster did not have five years of scheme service (of which at least two post 1991) so there is no obligation on them to accept the transfer.

However, I presume it is worth asking them if they would accept it!
 
Thanks for messages. First time posting and v impressed that am getting replies already.
Also excuse my ignorance but I assume the fact that I am continuing in my present employment (hopefuly for many more years yet) has no bearing on the fact that I would choose in this instance to "Retire"-from this scheme/bond - at 50?
Also is there a min time limit you have to hold such a bond for, in my case it may be less than a year just to get me over the 50 mark!
 
To answer your questions:

(1)No bearing - the rules of your "old" scheme will determine whether or not you can retire at 50.

(2)There should be no min time limit - but watch out for entry costs which can be a real drag on performance if the bond held for a very short period.
 
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