Defined Benefit Pension Transfer

BMW Pension Scheme

Do you have an old BMW Pension Scheme you are thinking about transferring into a more flexible arrangement?

Below is a general overview of what the scheme benefits are, these might vary from member to member, depending on what category you belonged to.

If you would like to find out if transferring your pension is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free initial consultation.

BMW Pension Scheme

Disclaimer

The information we provide here is our understanding of the pension scheme and may not be the latest, there may also be some detail missing. It is provided in good faith as an overview of the details we hold. There has not been any endorsement or otherwise of these details by the pension scheme, their sponsoring employer or scheme administrators.

This is a partial summary of the complex benefits provided through potentially many schemes, where retirement options can be very different within the same scheme or the same individual sections of those schemes.

If you are either a current or deferred member of the pension scheme and wish specific information about your personal benefits, the scheme administrator will need to be contacted.

Overview

Administrator: Aon.

Website: https://pensioninformation.aon.com/bmwschemes/

Scheme Retirement Age:

Normally 65, however if you are part of the BMW Limited Employee Benefits plan your normal retirement age will be 60.

Are partial transfers allowed? No.

Scheme Funding Position:

There is currently no information available on the funding status of the BMW Pension scheme.

Revaluation:

Benefits prior to 6th April 2009 will increase by RPI to a maximum of 5%. Benefits built up after 6th April 2009 will increase by RPI to a maximum of 2.5%.

Escalation:

Your pension prior to 31st August 2006 will increase by RPI to a maximum of 5%. Pension accrued after 1st September 2006 will increase by RPI to a maximum of 5% unless you are a third tier member where you will receive a higher increase of RPI to a maximum of 5%.

Flexible Options

A bridging pension may be payable, only if your leave BMW at company request or with company consent. This is £1,500 a year payable to state pension age.

Death in Deferment

If you die before your spouse, then a spouses pension may begin. The spouses pension is calculated as 50% of the pension a member is receiving at date of death before any reduction for tax free cash is taken.

If you leave no spouse or dependant a refund of contributions plus interest (paid as a lump sum) may be payable at trustee discretion. If applicable your additional voluntary contribution fund will also be payable.

Death in Retirement

If you die before your spouse, then a spouses pension may begin. The spouses pension is calculated as 50% of the pension a member is receiving at date of death before any reduction for tax free cash is taken.

A guaranteed pension is also payable for a set amount of time, this means if the member dies within the pension guarantee period the remaining pension instalments will still be paid as a lump sum. The pension guarantee period runs for 5 years from your retirement date.

Need BMW Pension Transfer Advice?

If you are a member of the BMW Pension scheme and would like to know if transferring or cashing in your pension at 55+ is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free consultation.

Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority and specialise solely in defined benefit pension transfer.

Pension Transfer Consultation

Get Started Today

Free Pension Transfer Guide & Consultation
If you would like to find out if transferring your pension or taking a cash lump sum is suitable for you, we can provide a free initial Pension Transfer Consultation known as abridged advice.

Simply complete your details below, and we will send you our Pension Transfer Consultation Pack and Enquiry Form.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • What your plans are for retirement.
  • Your needs for flexibility and control.
  • The likely cost of more in-depth advice.

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Defined Benefit Pension Transfer Warning

Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.

Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.

If you release all your money from your pension early you will not have anything left to provide you with income in retirement.

When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.

Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.

Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).

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