My employer has gone into administration, can I take a small pot lump sum?

Under HM Revenue & Customs (HMRC) rules, no benefits can remain in an occupational pension scheme (such as The People’s Pension) after a small pot lump sum has been taken. So, before you can take your pension money, we must receive all contributions that are due (when your employer has gone into administration there are often further contributions due).

This matter will become the responsibility of the Insolvency Practitioner, who is responsible for gathering all the information on the pension payments that should have been made before the administration/insolvency date. This information then forms the basis of a claim to the Redundancy Payments Office (RPO), which is part of the Government’s Insolvency Service. Assuming the claim for missed pension payments is agreed and paid by the RPO, the payments would then be sent to us.

However, this process can take a considerable time to complete. Whilst we appreciate this will delay you, under HMRC rules we can’t pay your small pot lump sum until all outstanding contributions are received.

When there are no longer any outstanding contributions, you’ll be able to request to take your money through your account online. If the contributions are still pending, you’ll see a message when you try to take your money online.

When you’re ready, find out how to take your pension money online

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