What is it?
If your client was a member of a company scheme but has left that employer, a Section 32 Buyout plan lets them transfer the benefits into their own name. They give up all the rights and benefits from the previous employer's scheme, but have more control over the plan and keep some of the guarantees and rules from the occupational scheme.
The plan can only accept one transfer from a registered company pension scheme and it can't accept any part of a transfer that includes protected rights benefits. The transfer must come from a company pension scheme registered with HM Revenue & Customs (HMRC).
It's set up by the individual planholder and isn't an occupational pension scheme.
Who’s it suitable for?
It's suitable for people who want to move their pension savings away from a previous employer's scheme to take more investment control.
Product features
This is a transfer-only product that can only accept one transfer from one pension scheme. It can't accept any:
- regular contributions
- single contributions
- additional transfer values
- protected rights transfers or contributions
HMRC maximum benefits rules apply to pension benefits and the plan must make sure that any guaranteed minimum pensions (GMPs) are paid out at retirement.
Next steps
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