Taking the money and eating it...

epaway

Hi, hope there's someone out there that can give me some advice.

I've recently left a pension scheme with a large employer, where I was employed for just less than 2 years. The pension I had with them now has two options for me. Take my cash contributions over the 23 months, or have the whole amount transferred to another pension scheme. My new employer's scheme doesn't allow transfers into it.

If I take the cash, i'll get £1,548. If I transfer, £4,731 goes to the new scheme. I could do with the cash, but not for the sacrifice of £3k. Is it possible to transfer the full amount to some type of pension scheme that I can then withdraw the cash from in the near future?

Many thanks

Paul

dunstonh

Is it possible to transfer the full amount to some type of pension scheme

Yes. Personal or stakeholder pensions can do this.

that I can then withdraw the cash from in the near future?

No. A pension is for retirement. You would have to wait until then.

MikeJones_2

Hi Paul,

epaway wrote: »

If I take the cash, i'll get £1,548. If I transfer, £4,731 goes to the new scheme. I could do with the cash, but not for the sacrifice of £3k. Is it possible to transfer the full amount to some type of pension scheme that I can then withdraw the cash from in the near future

I suspect that the difference in the two figures has more to do with contracting-out of the State Second Pension (which replaced SERPS). If your former employer's pension scheme was contracted-out of S2P then with Short Service Benefit the scheme will pay back to DWP a payment to cover your State Entitlements.

For more information, see:
RPSM09104710 - Technical Pages: Member benefits: Lump sums: Short service refund lump sum

Hope this helps.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

epaway

Hi Guys,

Thanks for the advice. All makes sense. I guess I was just hoping to get my hands on my ex-employers contribution! It was HBOS after all!!

Paul_Herring

MikeJones wrote: »

I suspect that the difference in the two figures has more to do with contracting-out of the State Second Pension (which replaced SERPS).

It's more likely that the difference is due to the employer's contribution, which is reclaimed if the fund is surrendered, but maintained if transferred.

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

You realise you can stick that stuff in your signature, rather than paste it manually to each of your posts?