Plans for the future
We’ve recently secured members’ benefits in the RSP Section by purchasing an insurance policy with Aviva, a leading UK insurance company.
When we purchase an insurance policy to improve the security of members’ benefits, it’s called a ‘buy-in’, and the Trustee remains responsible for looking after the RSP Section and paying members’ benefits. This is just the first step for securing members’ benefits for the long term. The next step is to complete a ‘buy-out’ with Aviva, and wind-up the RSP Section.
Winding-up the RSP Section
The Trustee is now planning to wind-up the RSP Section and transfer members benefits via a buy-out with Aviva. This would mean the RSP Section would no longer exist, and members’ benefits would be transferred to Aviva to look after. Once this happens, members will hold an individual policy with Aviva, and they will be responsible for paying members pension benefits when they are due.
As part of winding up of the RSP Section, the Trustee is offering eligible members the option to take their benefits now as cash. This is known as a Wind-Up Lump Sum (WULS).
A one-time offer for eligible members
As you are a member that is likely to be eligible for a WULS offer, you will have received a pack in April explaining what this means, and what to expect.
We have also written to all members who we believe won’t be eligible for an offer to let them know this is happening.
To be eligible for a WULS offer, the total value of your RSP Section benefits must be £18,000 or less at the point of offer.
It’s important to note that due to how the value of pension benefits are calculated, WULS values can fluctuate. Throughout this exercise the value of a member’s RSP Section benefits could change, which means so can a member’s eligibility.
