The groups said the decision was taken in response to HM Revenue & Customs’ delay in rolling out flexi-access drawdown across the market, as part of George Osborne’s planned pension liberation first announced in 2014.
The arrangement will allow NZ Endeavour Fund retiring scheme members to access their pension pot – or relevant transfer fund – through the Elmo International Retirement Plan.
Efficiency gain
NZ Endeavour Fund Trustees said the transfer will improve efficiencies and should reduce the cost of the pension transfer with the reduction of its pension transfer fee by £100 to £650 with plans to reduce the cost further to around £250 where a minimum of £50,000 ($70,700, €64,600) still remains with NZ Endeavour Fund after the transfer.
The transfers will take on Elmo’s standard charging structure, which will be subject to levels of business.
Familiar with Elmo managing director David Erhardt’s industry reputation and pragmatism, NZ Endeavour Trustees said: “Elmo are a well-respected retirement scheme administrator who share the same values of honesty and integrity we believe should comprise the very bedrock of any QROPS scheme. Like us they are focused on delivering high levels of administrative efficiency.”
While conscious that total early drawdown may not be the best option for its retirees, NZ Endeavour Trustees was keen to increase flexible options beyond those of which it was capable.
The Trustees added: “Whilst we do not believe that Flexi Access is the retirement panacea being touted by some members of the international advisory community, we appreciate that there are circumstances where an individual is better advised to vest their pension fund to enhance their standard of living and financial security, such as the redemption of expensive debt, or the purchase of the family’s permanent home.
“However, for many, the focus should be on an effective strategy to ensure an individual’s retirement fund is not exhausted before they are exhausted of life.”
