If you are part of the GKN Group Pension Scheme 2012 then it is likely you received a letter from Corinthian Benefits offering an enhanced transfer value for your defined benefits scheme.
The message from Corinthians will have explained your Personal Statement and confirmed your Enhancement offer from GKN.
GKN Group Pension Background
In March 2018 Melrose bought out GKN and as such agreed to fund GNK defined benefit scheme which at the time had an aggregate deficit of £1.1bn. Defined benefit pensions known as the golden handcuffs of pensions as they offer guaranteed incomes for life have become increasingly difficult to maintain in recent years due to longer lifespans and underperforming funds. As such a number of schemes such as GKN are offering enhanced values in order to “get members off their books”.
With these one-time enhancement offers such as the letter from Corinthians, it will show the value is only guaranteed until a certain date (usually 3 months) and clearly state the offer will not be repeated.
What’s the Issue?
In essence, there is one major issue which we have been told by our clients. 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. However, if you live outside of the UK, any UK FCA regulated IFA (Independent Financial Advisers) found are unable to offer any advice as they are only licensed to do so to UK residents. If you do not get advice the transfer cannot take place. As a result members of the scheme are finding it a nightmare to find a regulated adviser to speak to.
Harrison Brook is licensed through the Financial Services Commission in Gibraltar. Therefore we are legally able to advise clients throughout Europe and the rest of the world.
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.
- Transfer your pension into a Non-Resident SIPP. 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.