Residents facing financial hardship have pulled nearly $1 million out of their company pension plans with Argus.The company said half of the withdrawals were said to be intended for educational purposes.Pension withdrawals are allowed under Government’s Financial Hardship withdrawal regulations passed in July 2010. The new regulations state you cannot take out more than 25 percent of your total balance and you cannot take a hardship withdrawal more than twice.And the National Pension Scheme (Financial Hardship) Regulations 2010 allow you to take out money from your pension account only for the following reasons: medical expenses certified by a doctor, prevention of foreclosure on your home and educational expenses. Further, a refund of money can only be approved if the amount you are able to withdraw is at least $1,000.The Pension Commission told The Royal Gazette in August that $2.9 million had been withdrawn from pension funds by 530 applicants through the end of June, on the grounds of financial hardship.Government advises on the application form: “Think carefully before making an application as any refunds will likely result in a reduced pension at retirement”.In Argus Group’s annual report for the year ended March 31, chairman Sheila Nicoll and CEO Alison Hill told shareholders that despite volatility in the markets, pension assets under management have continued to increase and “the client base has remained stable over the year”.They wrote: “The economic downturn has resulted in several business closures, staff terminations and early retirement of employees.“Argus Pensions experts have been on hand to provide assistance and support to employees and employers during these very challenging times.”The Financial Hardship withdrawal regulations were one of two legislative changes introduced to provide relief to pension plan members and employers who may be facing financial challenges, Argus noted.In addition, the National Pension Scheme (Occupational Pensions) Temporary Amendment Act 2012 came into effect on August 1.This Act allows employers and/or members temporarily to suspend their mandatory pension contributions within the 12 months from the commencement date by mutual agreement.“The amendment, which applies to registered plans only, has been introduced to provide relief for employers and/or members who may be facing financial difficulties due to the current challenges in the local economy,” the Argus report said.“Argus is helping employers to understand the long-term financial impact of a temporary contribution suspension so that they can provide the right advice to their employees.”When asked how many had taken up the suspension, Lauren Bell, executive vice-president, Life & Pensions with Argus, told The Royal Gazette: “To date, only five percent of our clients have informed us that they will be suspending their pension contributions — either partially or in full. Of those companies that are suspending contributions, the majority are in construction, retail or related industries.”Visit www.pensioncommission.bm for online application forms and more details.