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Approved Existing Scheme
Under the Pension Reform Act, employers with qualified existing pension schemes can continue to manage these plans. The guidelines stipulate that retirement benefits paid from any approved existing scheme will be administered according to the terms set out in the trust deed.
benefits
Why Choose Our Approved Existing Scheme?
1.
Reliability
Retirement benefits are paid according to the terms outlined in the trust deed, providing retirees with reliable income during retirement.
2.
Flexibility
Employers can continue managing their existing schemes, allowing for customization based on their organization’s objectives and workforce needs.
3.
Financial Stability
These schemes are designed to offer financial stability, helping retirees maintain their standard of living after leaving the workforce.
CardinalStone Pensions is dedicated to managing your existing schemes, ensuring compliance with regulatory requirements while aligning with your organization’s objectives. Our goal is to provide a seamless experience for retirees, ensuring that benefits are disbursed effectively and in accordance with established guidelines. With CardinalStone, you can trust that your retirement planning needs are in capable hands.
Approved Existing Scheme Guidelines
- Employees may need to fulfill certain age and length of service criteria before qualifying for retirement benefits.
- Both employers and employees must meet any specified minimum contribution requirements set by the scheme.
- Employees must be actively enrolled in the existing scheme to benefit from its provisions.
- The employer must operate a qualified existing pension scheme that complies with the standards set by the Pension Reform Act.
- The scheme should not be subject to any pending legal disputes or compliance issues that could jeopardize its approval status.
To ensure seamless onboarding and effective management of your Approved Existing Scheme, the following documents will be required:
- A copy of the scheme trust deed detailing the terms, conditions, and administration guidelines of the existing pension plan.
- Documentation outlining the rules governing the scheme, including eligibility, contributions, and benefit disbursement processes.
- Recent statements showing the financial status of the scheme, including contributions, liabilities, and assets under management.
- Employee/Member Data – A comprehensive list of members, including details such as:
- Names and addresses
- Date of birth
- Employment dates
- Salary history and contributions
- Benefit entitlements
- Audited accounts of the scheme for at least the last three years (if applicable).
- A certificate or letter of compliance from PENCOM (if previously obtained) confirming the scheme’s approval and adherence to the Pension Reform Act.
- Documentation of any agreements with fund managers or custodians.
- Historical records of benefit disbursements, administrative fees, and other operational details.
- A formal letter from the employer authorizing CardinalStone Pensions to take over the management of the scheme.
- Details of the scheme’s designated bank accounts, including contribution accounts and accounts for benefit disbursement.
- Copies of all correspondence with PENCOM related to the scheme, including approvals, queries, or updates.
- Evidence of tax compliance for the scheme, if applicable.
- Copies of prior communication with employees regarding the scheme, including member statements, newsletters, or announcements.
- Navigate to the section for the chosen scheme.
- Follow prompts to express interest in opting for the scheme, providing required information.
- Complete any application forms associated with the scheme.
- Ensure all information is accurate and complete to avoid delays.
- Review the completed application and submit it through the website.
- Note any confirmation messages or reference numbers provided.
- Monitor the status of your application. CardinalStone may notify you of any updates via email or through your account dashboard.
- If approved, review the terms and conditions associated with the scheme.
- Understand any fees, contribution limits, or withdrawal policies.
- Regularly check your account for performance updates and ensure that your investment aligns with your financial goals.
- If you have questions or encounter issues, reach out to CardinalStone customer support for assistance.
Retirement: Benefits are payable when a member reaches the retirement age as specified in the trust deed or the relevant employment contract. Typically, this is at the age of 60, but it may vary depending on the employer’s policy.
Resignation: If a member resigns from their employment, they may be entitled to a portion of the accrued benefits, subject to the terms outlined in the pension scheme. These benefits are often paid out as a lump sum or transferred to a new pension plan.
Death: In the event of a member’s death, the beneficiary or beneficiaries designated in the trust deed will receive the retirement benefits in accordance with the scheme’s guidelines.
Disability: If a member becomes permanently disabled, they may be eligible to withdraw their benefits earlier than the standard retirement age, subject to the terms of the scheme.
Early Withdrawal: In some cases, early withdrawal of retirement benefits may be allowed under specific circumstances, such as financial hardship or other situations outlined in the scheme. Early withdrawal may be subject to penalties or reduced payouts.
Transfer to Another Scheme: If a member changes employers, they may choose to transfer their accumulated retirement benefits to another approved pension scheme, in accordance with the Pension Reform Act.