Private Pension Transfer Plan Question with aguaranteed level annuity

Nov 30, 2007 1 Replies

I transfered the sum built up in my company pension scheme to a private plan with the Royal Sun Alliance when I was made redundant in



1989 . The RSA pensions side has since been taken over by Resolution and nothing has really been earned in the way of bonuses in the last five years. I've just written to Resolution to see what terminal bonus I could expect when the plan matures in 2011 and have been told that I won't get anything as my guaranteed benefits are already protected ...... I never have understood this terminal bonus business as it all seems a bit airy fairy - some get it some dont and the amounts vary so much ! After all my plan was in place when all the sharp rises in the stock exchange of the 90's was taking place and others have received it. I stuck with things up until now due to guaranteed benefits etc.

I have a guaranteed basic sum with a guaranteed level annuity rate and also a guaranteed minimum pension as I opted out of SERPS when with my previos company scheme. My question is Is this guaranteed minimum pension in addition to the pension guaranteed from my guaranteed basic sum ( with profits ) or will it have to be paid out of this ? I am now self employed Is it an option for me to transfer back into the second state pension scheme ?



Many thanks for any help Cheers


Not easy to be sure, from the facts you've stated. Best thing is to ring Resolution and ask them how the thing is set up. Or get an IFA to look at it for you.

You mention that some people get terminal bonuses and some don't. (a) different companies operate in different ways, e.g more annual bonus and less terminal, or the reverse, and (b) if the company's withprofits fund was not largely invested in stocks and shares (and many had to pull out of them during the early 2000s) then even if the markets rose the fund didn't because it wasn't in that sort of investment. Some were, some weren't.

BTW, it's not an option for you to transfer back into the second state pension scheme if you are self-employed.

Rob Graham

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