In a case where only the Employer has made contributions to a members scheme, and the member has now left service with less than 2 years service (vesting perios is 2 years on the scheme), am I right in saying that the only option is to refund the full surrender value back to the Employer. This is then treated as a Trading Receipt.
The Employer involved wants to know if they can surrender this members policy and use this SV as a Single Premium top up to another members policy in the same scheme.
I am of the opinion that the refund should go 'through their books', and so a simple transfer of the SV into the other members policy would not be allowed?
What do ye think?
The Employer involved wants to know if they can surrender this members policy and use this SV as a Single Premium top up to another members policy in the same scheme.
I am of the opinion that the refund should go 'through their books', and so a simple transfer of the SV into the other members policy would not be allowed?
What do ye think?