Plans for the future
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.
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
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 part of our plans for the future, we are offering eligible members the option to take their benefits now as cash. This is known as a Wind-Up Lump Sum (WULS).
However, due to the size of your pension pot, we don’t believe that you will be eligible to receive this offer.
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.
If you are aged 80 or over, or if you turn 80 this year, you will also not receive an offer, and we will contact you separately.
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. If the value of your benefits changes and you become eligible, we will write to you and let you know.
