Buy-out option

Once your pension has been deferred for over 12 months, the Trustees may move the money into a personal arrangement on your behalf (known as a ‘buy-out’ option).

This is most likely to be done if your savings in FuturePlanner are relatively modest, as consolidating ‘small pots’ is generally thought to be a helpful way of keeping track of savings. The Trustees currently consider a pot of less than £30,000 to be ‘small’ for the purpose of the buy-out.

The buy-out policy would be with Fidelity. You can find out more information in the Fidelity booklet. The investment would initially be in a default strategy that is equivalent to the Default strategy used by FuturePlanner. However, you would have a direct relationship with Fidelity, rather than investing through the Trustees, and could make investment choices from the full range of Fidelity funds available.

No further contributions would be possible into the buy-out policy. However, you could consider a transfer of the benefits in that policy to another arrangement at a later date, if you wish to.

The Trustees would provide you with 30 days′ written notice of the intention to buy out the deferred benefit. The buy-out would not proceed if there is an outstanding request from you to use the transfer option.