Situation on named beneficiary on pension.

M

mary newton

Registered User
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Hi, I hope someone can help me..

If a company (now wound up) had 2 directors who were both employees of said company but only 1 director is named on the policy documents of the pension plan, does the other director have to...

a) give written permission for the other named director to receive any benefit from the scheme and...

b) is that director actually entitled to half of the said scheme even though they are not specifically mentioned on the pension documents.
 
Hi Mary

The pension would be set up under trust for the named beneficiary, not the other director. It is likely that the company was the trustee, so either director can sign on behalf of the company. He does not need permission from the other director to draw down the benefits and does not have to give him any of the proceeds.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Thank you for your answer Steven most helpful. If I may ask another one or two. The company went into liquidation in 2008 and the final creditor meeting took place in Oct 14,effectively it is now fully wound up.

The actual pension is in a "paid up" status with the funds invested in cash bonds since 2012 when this was was requested by beneficiary to "play it safe" so to speak. The value is tiny at only 24K approx. It is an executive (occupational?) pension . The named director wants to access the funds from the age of 50 . My questions are;

1) As the fund is so low will this be looked upon as a trivial pension if the beneficiary cannot guarentee an income of 12370 per yr or will he be required to invest it in an armf?

2) Beneficiary is currently unemployed, does this have an effect on accessing pension? Many thanks Mary.
 
Hi Mary

Yes, it will be seen as a trivial pension (the qualifying test is a lot lower than €12,370! But as the fund after tax free cash will be below €20,000, it will be treated as trivial).

Employment status has no bearing on being able to draw down a pension.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
That's great Steven, the only reason I was even able to pose the relevant questions was because of your valued input in this forum on many other threads , up to yesterday I had no idea what a trivial pension was or what implications it had on the fund, again many thanks, it is much appreciated! Mary.
 
SBarrett said:
Hi Mary
It is likely that the company was the trustee, so either director can sign on behalf of the company. He does not need permission from the other director to draw down the benefits and does not have to give him any of the proceeds.
Click to expand...

I think that if the company is in liquidation or already wound up, then the director would no longer have authority to sign on behalf of the company....
 
Insurance companies have always accepted the signature of a director of a wound up company to release funds from an old pension scheme. I haven't had one of these scenarios in a few years so they may have changed what they will accept.
 
If that is the case who would be required to sign? The pension is ring fenced and formed no part of the liquidation and also the fact that the named beneficiary was able to instruct Pension provider to change the assets from a variable to a cash fund investment indicates that that person has the authority?

(Sorry I am replying to Jim's post but didn't use the quote function)
 
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