Do you hold a Ford UK pension?
If you are part of the Ford UK Pension scheme then it is likely you have received a newsletter from the Ford UK Pensions trustees informing you of the new choice being offered regarding transferring the benefits.
Ford has recently announced that they are going to offer the pioneering choice to partially transfer a members benefits. There are around 8500 members who are able to take advantage of this, currently enrolled in the Ford UK ‘Defined Benefit’ (DB) scheme.
Ford UK Pension Scheme Options
If you are currently a member of the Ford UK Pension scheme and are wanting to transfer your Defined Benefit (DB) Pension then your only option is to transfer the whole pot as a lump sum, to another recognised pension scheme. The right to a secure company pension must be relinquished entirely. Ford UK Pension Scheme, however, is offering a middle-ground, whereby you the member, can access half pension and half lump sum.
This new deal being offered by Ford would see your pension split straight down the middle. As a result, half is retained by the Ford UK Pension Scheme as a secure future income as a defined benefit (DB). The other transferred to a Defined Contribution Scheme (DC) personal pension arrangement as a cash pot. The tax-free lump sum is split 50/50 and you the member, would still need to take advice on the partial transfer.
Best of both worlds?
One of the biggest concerns since the pension freedoms act was introduced back in April 2015 has been employees encashing their previously tied up retirement funds, in turn giving up their guaranteed income for life and being left with nothing some years later. The combination of bad advice from IFA’s and employees making incorrect decisions has created a lot of negative headlines.
This option about to be offered by Ford UK Pension Scheme is considered a “best of both worlds” for members seeking to convert their Defined Benefit (DB) entitlement into a defined contribution (DC) pension arrangement. As such allowing access to immediate funds whilst keeping a guaranteed income and reducing the risk of members running out of income in old age.
What can you do?
- First of all, speak to an adviser and allow us to examine your own unique position. We take a fully holistic approach to finding the best solution possible for your current and future requirements.
- Would a transfer out of the Kodak pension scheme be beneficial? Any defined benefits pension will come up against severe scrutiny before being allowed to transfer and rightfully so. The process is long and arduous but the first step should be to speak to an Independent Financial Adviser.
- If the transfer value is more than £30,000 and you wish to transfer you will need to take independent advice about transferring your benefits out from an adviser who is authorised by the Financial Conduct Authority. If you do not get advice the transfer cannot take place.
To find out more about your pension position and options. Contact Harrison Brook today to speak with an advisor to discuss your options. Harrison Brook is a cross-border pension transfer specialists. We can explain and assist in discovering the options available to you. Taking you through the process of gaining valuations up to placement into a suitable solution.