Transferring pension bond to SIPP - can I ?

Kerry_o'keefe

Being honest, until 2 weeks ago, never heard od SIPP's. My question is long winded, but would appreciate any advice. I worked for the NHS for 8 years, I got a post then at a BUPA hospital. Never thinking the NHS would have me back, i then transferred mu NHS pension to a Canada Life 'Pension transfer Bond'. This did reasonably well in the nineties but prior to 2003 the value of the fund had started to drop. Fund performing ok now.

Value 2004 £ 12433

Value 2005 £ 14981

Question : Can I transfer this to a SIPP ? If I can, is there any merit in it ?

This forum is the only way I can get honest opinions and information. I can not find a IFA locally (Astley, Greater Manchester) and know of a number who contribute to this site. I thank them again (and all other MSE'ers) who have provided me with help and advice,

EdInvestor

Hi Kerry

I imagine what you have there is something called a "Section 32 buyout bond", is it?

If so this will contain both non protected and protected rights(contracted out) money.At the moment the former can go into a SIPP but the latter cannot.It's possible this will change in April - we are awaiting confirmation from the DWP.

At present you would need to set up a separate pension outside the SIPP for the PR money at an insurer.Rather than do this it may be sensible to wait for a bit until the situation becomes clear.

Is the entire pension invested in the With profits fund, or just the PR money?
Have you asked for a transfer value yet (there may be a penalty on exit)?

I don't suppose you have made a misselling complaint to whoever sold you this this pension, have you? The NHS scheme is one of the best in the country and you should never have been advised to leave. Have Canada Life looked into this already?

dunstonh

Section 32 buy out bonds have certain terms which may be beneficial left where there are. These often include tax free lump sum enhancements and guaranteed annuity rates. There may also be mis-sale guarantees built into the product (if the s32 was deemed a mis-sale and s32s accounted for many of the mis-sold plans). If transferred, these benefits would be lost.

The answer to your question is yes, you can. However, I strongly recommend you took independent advice before considering it as you could stand to lose more than you would gain. Especially if you have access to the Canada Life range of funds with switching options.

if you go to https://www.unbiased.co.uk and do a post code search, it will show the nearest IFAs to you by distance. A significant number do not have big offices and many work from home. You may not be aware of these but they will appear on a postcode search.

Kerry_o'keefe

Edinvestor and dunstonh I have activated your thanks button but still would like to thank you again in a post. Many thanks.

Kerry