Merchant Navy Officers Pension Fund – MNOPF
The Merchant Navy Officers Pension Fund, also known as MNOPF was formed in 1938 and provides Defined Benefits pensions for ship’s officers and their families. A Defined Benefit pension is a guaranteed income for life from retirement, often with 50% of the annual amount passing to the spouse or partner in death. The amount is determined by your salary earned and how many years you were employed.
The MNOPF is known for having a generous scheme and the majority of the time a member would be best off staying within the scheme.
MNOPF – My Options
Members of the merchant navy officers pension have 3 options which are as follows:
- Take an MNOPF pension
- Take a tax-free cash lump sum and reduced pension
- Take all your benefits as a lump sum / Transfer to another pension provider
Although each members position is particular to their circumstances however there are a number of key factors to significant for all when considering a pension transfer.
Merchant Navy Officers Pension Fund – Circumstances that suit not to transfer
- You have no other forms of guaranteed income in retirement such as a state pension
- You have a considerable amount of debt such as a mortgage
- You have no other company or private pensions
- You have no other liquid investments such as equity investments, cash in bank or ISA’s
- Your MNOPF pension is your main source of income in retirement
Merchant Navy Officers Pension Fund – Circumstances that could suit to transfer
- You do not live in the UK and have no plans to return in the future
- You hold other DB pension schemes which you intend to stay in and drawdown on in retirement
- You have serious health issues
- You have extensive other pensions, investments or savings to use in retirement
- You wish to pass on the value of your pension to loved ones as part of future retirement planning
What are my options for transferring?
Transfer your pension into an International SIPP or a QROPS if you have ‘Lifetime Allowance’ (LTA) allowance concerns. 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 a GOLD STANDARD adviser who is authorised by the Financial Conduct Authority. If you do not get advice the transfer cannot take place.
Usually, the correct option is to stay within the scheme and take advantage of the guaranteed income for life. Those with an immediate cash requirement have the option to take 25% upfront with a reduced guaranteed annual amount. For the few who are in the fortunate position of being able to consider a transfer receiving the best advice from independent, non-biased specialist pension advisers is of the utmost importance.
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