In this video, Technical Connection head of pensions strategy Claire Trott looks at what financial planners need to consider when it comes to block transfers, also known as 'buddy transfers'.
Block transfers are where two or more people are transferring from one registered pension scheme to another. They come into play where there are members with a protected pension age or where there is pre A-day scheme-specific tax-free cash.
Claire emphasises the need to make sure the process is well documented, so that it can clearly be shown to be a block transfer. She also flags that the receiving scheme for a block transfer cannot have been in force for more than 12 months.
Block transfers represent a way of protecting the benefits available to members before A-day in April 2006, while at the same time allowing people to access the options offered post-pension freedoms within new schemes.
Through Techlink Professional and Techlink Communicator we enable you to:
- Be better informed
- Reduce risk
- Do more business
- Communicate better and smarter
- Save time
To activate your complementary Nucleus user access to Techlink go to https://www.techlink.co.uk/public/nucleus/