A pension arrangement that was only available to receive a transfer value from an Employers (Ocupational) Scheme. Since April 2006, this product is generally used to ‘protect' higher levels of Tax Free Cash' built up prior to A-Day..
Example of Use
Anyone with high levels of benefits retained in an occupational scheme.
Points of Interest
Particular care should be taken when considering a transfer from a Final Salary/ Defined Benefit Pension Scheme as this will involve giving up defined pension benefits and replacing them an arrangement where the eventual pension will depend upon investment performance.
Transferring from occupational pension schemes can change the format of benefits for example the tax free cash at retirement and the benefits on death before retirement may be different.
This is an extremely complex area of financial planning and it is essential that professional advice from an appropriately qualified individual is taken.
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