ARF option with DB pension scheme ?

C

cronley

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I have preserved pension benefits in a defined benefit scheme with a private company that I left a few years ago after 30 years service.
I am 62 years. There is no solvency problem with the DB pension scheme, and I am allowed take a transfer of my preserved benefits, which I am considering doing. I know the general advice is not to transfer from a DB scheme, but it suits me to take a transfer for personal reasons.
I know I can transfer to a Buy out Bond. But the Buy out Bond does not give me the option of going for an ARF, I can only buy an Annuity with the bond. I am not keen on buying an annuity. Is there any way I can do a transfer that would give me the ARF option. I was not a director in the company. I am unemployed, and unlikely to be in employment again.
 
If you paid AVCs to the DB scheme, you can ARF the value of the AVCs at retirement. Any Buy Out Bond would isolate the AVCs from the rest of the transfer value to facilitate this.

Aside from that, from the details you have given, the answer is unfortunately No. You cannot transfer to a PRSA with more than 15 years service - PRSAs offer access to ARFs.

Another route would be to transfer to another Occupational Pension Scheme but as you're not employed at present, that's not possible either.
 
Dave
Thanks for your reply. I believe that transfers from Defined Contribution pension schemes are being allowed access to ARFs in 2011. If this is true, it seems very unfair that transfers from DB schemes are not being given the same options as DC schemes. A transfer from DB scheme to a Buy out Bond - is a Buy out Bond not effectively the same as a DC arrangement - once the transfer is in the Buy out Bond, you loose your Defined Benefit status and entitlements. Is there any likelihood of the ARF option being extended to transfers from DB schemes.
 
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