S32 Transfers

Hi All

Are there any providers who will accept a S32 transfer in so the client can take the protected TFC but not start the annuity and leave their remaining funds in draw-down? Client is looking to take TFC to clear debts and use the increased disposable income to make pension conts. He is stillworking so annuity is not required there are no GMP/GARs

He has 2 of these plans so concurrent benefits and also apportioning the TFC apply 

Not sure if its a non-starter due to buddy/winding up rules either?

Bit out of my depth here TBH!

Any help  appreciated



  • Transfer of a S32 to another plan will lose the protected PCLS - so would need to be S32 to S32 transfer.

    A Section 32 contract from which the whole of a member's rights are transferred (on or after 6 April 2006) can be treated as though the scheme is winding up. So protected lump sum rights and / or a protected pension age can be retained following transfer of the whole of a member's rights under an S32 contract to a new S32 contract.

    I think the ceding scheme and receiving scheme have got to agree to the transfer.

    From memory Transact have an S32 which would allow drawdown (or switch to FAD post payment of PCLS)...

    I might be wrong though.
  • Thanks for your response. It was another S32 I was considering yes.

    And deep in the back of my mind I could hear an old colleague telling me the 'winding up' rules were irrelevant but couldn't remember why, so thanks for clarifying! 

    Will speak to Transact but would also appreciate any others thoughts on options.

  • Old mutual will bounce through a section 32 to a collective retirement account.
    Benjamin Fabi FPFS
    Chartered Financial Planner

  • I believe Sanlam have a product which will allow this, although we never got around to completing one. Would need to be researched.
  • Update: Transact have confirmed they can do this. 
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