Section 32 Buyout
The paid-up pension rights and entitlements from a previous employment such as an occupational pension scheme can be transferred to section 32 buyout policies. These policies were introduced in 1981 and where the scheme member is transferring guaranteed minimum pension (GMP) rights from a contracted out scheme the revalued GMP rights will be provided at the state retirement age.
Benefits can be taken between the age of 55 and 75 as well as a tax free lump sum. However, in most cases where a guaranteed minimum pension is payable, the scheme very often doesn’t have sufficient funds in order to pay any tax free cash sum.