New option for active members to access pension savings whilst working
The Company and Trustee have introduced a new option for active members of the Plan. This allows active members to access some of their pension savings from the DC Section whilst continuing to work and contribute to the Plan.
The option works by allowing members to move a portion of their pension savings into a personal pension account. The member can then begin to access the savings moved out of Plan, whilst continuing to build up savings in their existing Plan account.
The Trustee has agreed to allow members to use the option only if they meet a number of conditions. These conditions have been carefully designed to reduce the risks of pension scams, and to sensibly manage increased administration costs of providing the new option. Specifically these conditions are that the member:
- Is old enough to access their pension savings immediately. This is currently anyone who is at least 55, but this age is due to rise over time under legislation.
- Transfer the benefits into a registered UK pension plan.
- Take a transfer amount of at least £10,000, and leave at least £10,000 in the Plan.
- Is only able to take this option once in any 12 month period, and can only take this option twice in their lifetime.
The Trustee has the right to change these conditions at any time and without prior notice.
Should you wish to request to take this option, you should contact Standard Life in the first instance who can provide you with further information.
The Telefonica Pensions Team