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Limited retirement and death Benefits Scheme

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  • 29-06-2012 7:54pm
    #1
    jer1ch0
    Registered Users Posts: 27 ✭


    I started paying into a "Limited Retirement and Death Benefits Scheme" in my job in 1997. I was made redundant in the last year. I have been informed that I cannot cash it in, which would be my preference.

    At the moment I appear to have very little options. I cannot pay into it. It just seems to be stuck there until I'm 65, when it will be practically worthless.

    What is my best option? Could I cash it in, or at least access some of it when I'm 50 in 2 years time?
    Thanks.


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  • Options
    #2
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    You have two options: -

    (1) Leave the fund where it is in the scheme. You can take early retirement from age 50, but only with the agreement of the scheme trustees. The scheme trustees may well be your former employer itself, or trustees appointed by the employer.

    (2) Transfer the fund now into a Buy-Out Bond that you can choose yourself from any broker or pension company. If you have a Buy-Out Bond you can take early retirement at 50 without any reference to the scheme trustees.


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    #3
    jer1ch0
    Registered Users Posts: 27 ✭jer1ch0


    Thanks for your answer Liam.
    How can I take "early retirement" if I have been made redundant and am not working at the moment.

    The company I worked for is still trading. The pension scheme is still in operation within the company although they are obviously not paying anything for me. I am no longer paying into the scheme either.


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    #4
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    You can take early retirement from an Occupational Pension Scheme from age 50 with the agreement of the scheme trustees, or from a Buy-Out Bond at 50 because you decide it yourself. You cannot draw benefits any earlier than 50 except in a case of serious ill-health.

    You can take early retirement in this context regardless of what your employment situation is outside of the pension scheme. In this context "early retirement" just means you're drawing your benefits from this particular scheme - you can be working away in a different job at the same time, or not.

    If, however, you're on means-tested benefits at the time, then drawing down your pension could affect your means-tested benefits.


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    #5
    jer1ch0
    Registered Users Posts: 27 ✭jer1ch0


    Thanks for clarifying that Liam - I have some thinking to do now.


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