Defined Benefit Pension Transfer
Merchant Navy Ratings Pension Fund (MNRPF)
Do you have an old Merchant Navy Ratings Pension Fund 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.
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.
Scheme Retirement Age:
Ratings – This is the age at which you can retire without your pension being reduced for early payment. For most people their NPA is their 62nd birthday, however your own NPA may differ. Your NPA is shown on your Retirement Statement.
Officers – For the New Section of the MNOPF, this is the age at which you can start receiving your pension without any reduction for early payment.
For most members this is age 61.
Female members in service as at 1 January 1991 retain the option to retire at age 60 without any reduction.
Men who were in service as at 1 January 1991 can opt to receive the benefits they have accrued from 17 May 1990 as if they were due at a NPA of 60.
Are partial transfers allowed?
Ratings – The scheme allows partial transfers, the member can transfer their non-protected rights and leave protected rights in the fund.
Officers = No partial transfers
Scheme Funding Position:
Ratings – As of 31st March 2021 the fund was 96% funded.
Officers – As of 31st March 2021 the fund was 102% funded.
Pre and Post 1988 GMP are revalued using fixed rate revaluation from date of leaving to age 65. Pre 97 and Post 97 pensions are revalued using statutory revaluation, currently CPI to a maximum of 5% from date of leaving to normal retirement date.
Pre 1988 GMP does not increase in payment, Post 1988 GMP is increased using CPI at a maximum of 3% and Post 97 pension is increased using RPI at a maximum of 5%. Pre 1997 excess is subject to discretionary increases but there has not been one since 1991.
Death in Deferment
Ratings – If you leave a spouse or civil partner, they may be entitled to receive a pension that is roughly equal to 50% of your pension as at your date of death.
If you do not leave a spouse or civil partner, a lump sum may be payable to your beneficiaries in the form of a Return of Contributions payable with interest at 2.5%.
Officers receive lump sum and spouse pension.
Death in Retirement
Within 5 Years Of NPA
If you die within five years after your NPA, your estate will receive a lump sum of back payments from your NPA to your date of death, which may be subject to inheritance tax.
The remainder of the lump sum is in respect of pension payments between your date of death and the fifth anniversary of your NPA. The Trustee has discretion to decide the person(s) to whom this element of the lump sum is paid. The Trustee will choose from amongst your potential beneficiaries (although the Trustee would usually take account of your Expression of Wish form). As the law stands at the moment, this part of the lump sum should not form part of your estate and should not therefore be subject to inheritance tax. To help the Trustee decide, members are encouraged to keep their Expression of Wish form up to date.
More Than 5 Years Of NPA
If you die more than five years after your NPA, your estate will receive a lump sum of back payments from your NPA to your date of death. As these back payments will be paid to your estate, they may be subject to inheritance tax.
This information is based on our own scheme specific real-world data gathered over an 18 month period. To be clear and ensure there is no risk this information can be deemed misleading, it is our own data for the entire process, which includes our own very thorough and complex regulatory analysis and advice process, in addition to the gathering and provision of accurate information from the scheme administrators and their subsequent completion of any pension fund transfer requests. Future timescales could vary.
Need Merchant Navy Pension Transfer Advice?
Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority and specialise solely in defined benefit pension transfer.
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Free Pension Transfer Guide & Initial Consultation
Complete the form below to receive your Free Pension Transfer Guide.
If you would like to find out if transferring or cashing in your pension is suitable for you, we can provide a free initial consultation known as abridged advice.
Simply return the enquiry form included in the guide and post it back in the free post envelope provided.
As part of the consultation we will look at:
- What existing pension plans you have in place.
- Whether you have the right type of pension to transfer.
- What your plans are for retirement.
- How much cash you can release.
- Whether your existing pension remains the best fit for you.
- 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).
What our clients say
Grove Pension Solutions assisted in moving my company pension to a personal pension, which will allow me to retire 7 years earlier than planned.
Since the FCA have made this option very difficult, Grove made the process very swift and smooth, with true professionalism throughout the process. The communication was excellent at all times, and there was always someone to answer a question if it arose.
I would highly recommend Grove Pension Solutions for your personal pension requirements.
Grove managed the transfer of my pension swiftly and kept me in touch with the process at all times. On occasions when I telephoned with questions they were patient, and regardless of who I spoke to, the staff were knowledgeable, friendly and reassuring. Grove Pension Solutions went above and beyond to complete my transfer and I cannot thank them enough.
Nothing is too much trouble, everything was explained in plain English and I was asked several times if I wanted to go through with any information again or any questions , all staff were professional and completely “knew their stuff” they returned calls when promised such a pleasure to do business with a very big thank you
In the final stages of my transfer, throughout the process the service has been very professional, regular updates by phone and email, the advisors are very friendly and explain the process in an easy to understand way. Have recommended to two other people already, wouldn't have any hesitation to use Grove Pension Solutions again, 10/10 thank you.