What happens to my pension after IHR?

[speedy]

I'm 35 and on the verge of IHR after just over 8 years service. Pretty sure Ill only qualify for the lump sum, So I wondered what happens to my pension? Can I cash it in, or does it sit in the fund until I reach pensionable age?

And info appreciated.

[TrueBlueTerrier]

There is a website that RM pension have, you might want to read through it for specfic points however one seems to cover your question http://www.royalmailpensionplan.co.uk/2 ... g-the-plan" onclick="window.open(this.href);return false;

Leaving the Plan

When you leave, you will be sent a copy of the guide ‘Your options on leaving the Plan'.

Preserved benefits
You will be entitled to a preserved (sometimes known as a deferred) pension, which is usually paid from Normal Retirement Age. This preserved pension is increased between the time you leave and the time you retire. The Pensions Service Centre will contact you shortly before your benefits are due, to confirm any options you have. (If you are retiring early, you should make sure that you should contact them.) Please also make sure that you keep the Pensions Service Centre up-to-date with your address details.

You may also be able to retire early voluntarily or because of ill-health. These rules surrounding preserved benefits are quite complicated and you can find out more in the relevant Pensions Brochure for Section A/B.

In the event of death during the period between leaving and starting to receive benefits, an entitlement to death benefits such as a lump sum payment and a dependant's pension usually arises.

Transferring out of the Plan

Alternatively, instead of keeping your benefits preserved in the Plan, you may ask for a transfer value to be paid into another registered pension scheme, such as:

a new employer's scheme
a ‘buy-out' policy with an insurance company
a personal pension or stakeholder pension plan.

Please note: it is not possible to transfer to another Royal Mail pension arrangement.

Provided that certain legal requirements are met, the amount of the transfer payment (other than in relation to AVC funds) will be calculated by the Trustee on the advice of the Actuary. You will normally receive a transfer value statement within 3 months of asking for one. This is known as your ‘Guaranteed Statement of Entitlement'. An estimate will be provided if the Statement cannot be provided within 3 months. You are not entitled to more than one Guaranteed Statement of Entitlement in any 12-month period.