Case study 06.01.2009

Have you thought how you will maintain or even enhance your lifestyle in later life?

Family Pension Trust

Existing Pension Arrangements

Members may have pension benefits in other pension arrangements. These could include employer sponsored pension schemes or personal pensions. The assets within these arrangements could be used to fund the scheme and the following possible courses of action should be discussed with a financial adviser.

Transfer the value of the investments in the other arrangement(s) into the scheme, in cash form or by in-specie transfer. This will increase the funds under the control of the member and available for investment.
Assign the other arrangement(s) to become an asset of the scheme. Assets assigned to the scheme may be invested within the member's individual pension arrangement, or one or more of the common investment funds. Assigning another arrangement to become an asset of the scheme increases the overall value of the scheme and contributions to the other arrangement may continue, unless enhanced protection has been claimed. This option is often taken when there are reasons why a transfer of investments is not preferable. This could include a penalty if the funds are moved or the loss of certain rights such as guaranteed annuity rates.
Make the other arrangement paid up, leaving the funds with the existing provider. This option may be preferred if there are severe penalties on the fund if a transfer proceeds or if there are guaranteed annuity rates attached to the arrangement and the member does not wish it to be assigned.
Continue to run the other arrangement alongside the new scheme.