In the event of a buy-in, the Trustee will remain responsible for setting the factors that determine your options (transfer value, early retirement and cash commutation) until the point in the future when a buy-out is triggered.
If the Scheme proceeds to a buy-out, each member will be assigned an individual insurance policy. From this point the insurer will be responsible for paying members’ pension benefits. Members who are yet to retire will be eligible to request a ‘surrender value’, which works in a similar way to a transfer value from the pension scheme. The terms of the surrender option will be set by the insurer and at this stage, it is not possible to be certain what these terms will be. The surrender value could be similar to the Trustee’s current cash equivalent transfer value basis, but equally they could be better or worse than the current basis.
A similar consideration applies to the Scheme’s early retirement and cash commutation factors which will be set by the insurer once the Scheme proceeds to buyout.