S32 Transfers
Ralfos
Member
Hi All
Are there any providers who will accept a S32 transfer in so the client can take the protected TFC but not start the annuity and leave their remaining funds in draw-down? Client is looking to take TFC to clear debts and use the increased disposable income to make pension conts. He is stillworking so annuity is not required there are no GMP/GARs
He has 2 of these plans so concurrent benefits and also apportioning the TFC apply
Not sure if its a non-starter due to buddy/winding up rules either?
Bit out of my depth here TBH!
Any help appreciated
cheers
Are there any providers who will accept a S32 transfer in so the client can take the protected TFC but not start the annuity and leave their remaining funds in draw-down? Client is looking to take TFC to clear debts and use the increased disposable income to make pension conts. He is stillworking so annuity is not required there are no GMP/GARs
He has 2 of these plans so concurrent benefits and also apportioning the TFC apply
Not sure if its a non-starter due to buddy/winding up rules either?
Bit out of my depth here TBH!
Any help appreciated
cheers
Comments
A Section 32 contract from which the whole of a member's rights are transferred (on or after 6 April 2006) can be treated as though the scheme is winding up. So protected lump sum rights and / or a protected pension age can be retained following transfer of the whole of a member's rights under an S32 contract to a new S32 contract.
I think the ceding scheme and receiving scheme have got to agree to the transfer.
From memory Transact have an S32 which would allow drawdown (or switch to FAD post payment of PCLS)...
I might be wrong though.
And deep in the back of my mind I could hear an old colleague telling me the 'winding up' rules were irrelevant but couldn't remember why, so thanks for clarifying!
Will speak to Transact but would also appreciate any others thoughts on options.
cheers