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What are tax deferred pensions

what are tax deferred pensions

The below Q&As provide details on how to claim your pension, how to request a transfer value cash equivalent for transfer to another Registered pension scheme and the process following the death of a deferred member.

Please email if there is anything else you would like to see covered in the Deferred Section of this website

Q1 What is a deferred member?

A former employee of Rexam, Bowater, any UK company in the Bowater group of companies, those who were employees of companies acquired by Bowater and of companies sold by Bowater and Rexam and (any acquired companies) who retains a pension in the Rexam Pension Plan which has not yet been put into payment. We have around 11,000 deferred members

Q2 Can I request my deferred pension to be paid early?

Her Majesty's Revenue & Customs (HMRC) will currently permit pension plan Trustees to pay a pension early (ie before the deferred member reaches the normal retirement or pension age) to a deferred member but not before they reach age 55.

The Rexam Pension Plan will only pay a deferred pension early at an actuarially reduced rate if the following apply:

a) Both the Trustee and Rexam agree to early pensions being paid

(Currently, both agree to these being paid early so long as no augmentation is required –

November 2007)

b) The deferred member completes an Life Time Allowance form as required by HMRC

(A copy of the required form will be sent to you with your quotation)

c) The deferred pension is not restricted by contracting out guarantees from being paid

early (Individual calculation required to assess)

Pension payments are treated as earned income and tax will be deducted (if applicable) via the Rexam Pensioner payroll. It should also be noted that payments can only be paid direct to a member's bank or building society account and not to a third party.

Our target is for a response to be sent within 20 working days following receipt of all the above information.

Q3 What is the process of requesting a transfer value cash equivalent?

For those Deferred members who may wish to surrender the accrued pension (ie the present value of the deferred pension built up through being a member of the pension plan and any attaching spouse and dependent pensions and any associated indexation) for a single cash equivalent lump sum which can only be transferred to another Registered pension plan in the UK and some overseas pension arrangements approved by the HMRC.

Such a cash equivalent transfer value is usually only available once a year and not available if you are within one year of reaching the normal retirement date.

A cash equivalent transfer value is guaranteed for 3 months (12 months for divorce

purposes) and if the transfer is to proceed a written request must be received by the Rexam Pensions Department's within the guarantee period.

Our target is for a response to be sent within 30 working days of receipt of a request

Deferred members thinking of this course of action should take their own personal advice from an independent financial adviser. Rexam pensions cannot and will not give any advice.

If you are seeking to cash equivalent transfer value to be paid into a new employer's pension plan, you should firstly check that they will accept incoming transfer values.

Q4 How can I request an projection of my pension or cash equivalent transfer value?

These can normally be requested once a year from the Rexam Pensions Department. Please write to the address at the end, quoting:

a) Your full name

b) Your current address

c) The Company you worked for and period of employment ( eg 1975 to 1988)

d) The date of early retirement (if early retirement requested)

e) Your email address (if you wish to share this with us)

f) The reason for a cash equivalent transfer value request (ie transfer or divorce)

g) Details of the relevant Registered pension scheme of financial adviser, giving your

written authority for us to disclose the relevant information to them

Q5 What is needed if my family need to advice you of my death?

At such a sad time, there are many pulls on time and priorities. A short notification of the death to Pensions Department is all that is needed initially. When the family is able to look to sort out the administration that follows the death of a loved one, Pensions Department will need a copy of the following:

a) A copy of the death certificate

b) A copy of the birth and marriage certificates of any spouse or financial dependent

c) Copies of any children's birth certificates if under 23 years old and still in full time


d) Addresses of the person sending the information and addresses of spouse, financial

dependants and children if different from the deceased's address on the death


e) A copy of the member's Will (if applicable)

On receipt of such information, Pensions Department will advise whether further benefits such as continuing pensions or any cash payments are due to the family, next of kin or the deceased's estate.

Our target is for a response to be sent within 10 working days following receipt of all the above information.

Not all deferred pensions have an attaching pension or lump sum payable on the death of a deferred pensioner.

Q6 What is the address to write to Rexam at Tonbridge?

Rexam Pension Trustees Limited

Category: Taxes

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