Standard Life pension transfer?

MM2005

Hi there

My wife has had a SL pension since the 80's. I believe she changed this to a stakeholder 2-3 years back (at least I don't think she froze the original and started the stakeholder separately).

Anyway, the firm she works for were taken over about a year back and she has become eligible to join their company scheme. This is also with Standard Life and the company contribute to this (I think it's 5% of salary).

The question I have is, to make things simpler, can (should) she transfer the funds from her own private SL pension into the new company one?

I'm not sure what benefits (or pitfalls) there may be. I guess if she decides to leave this company then she'll have to re-transfer (or keep it frozen) in the company one.

Sorry, if this is a bit vague - I know very little about pensions and I'm not sure rules there are these days. I think you can have a stake holder and a company scheme going at the same time (whereas I don't think this was allowed a fear year back prior to the stakeholder introduction?).

If you can pass your comments/advice then no doubt I will have some more questions!

Thanks for your help.

Cheers
Mo

cheggers

My advice would be leave the SL pension alone for now as your Mrs might be entitled to some windfall shares if she has some of the pension it SL's With Profits fund, moving or closing pensions may result in a loss of shares.

If your wife does get a windfall if SL goes PLC then contact and IFA for some advise on what to do with the pension.

dunstonh

You can have multiple pensions on the go, so no problem with that. The rules apply on contribution levels or lifetime maximums.

SL have some very good funds although their personal pension (like most providers) is better than the stakeholder pension.

MM2005

cheggers wrote:

My advice would be leave the SL pension alone for now as your Mrs might be entitled to some windfall shares if she has some of the pension it SL's With Profits fund, moving or closing pensions may result in a loss of shares.

If your wife does get a windfall if SL goes PLC then contact and IFA for some advise on what to do with the pension.

Yeah sorry, meant to mention that - she is entitled to shares and anythind she/we decide will be done after any DM...

MM2005

dunstonh wrote:

You can have multiple pensions on the go, so no problem with that. The rules apply on contribution levels or lifetime maximums.

SL have some very good funds although their personal pension (like most providers) is better than the stakeholder pension.

Any thoughts on transferring the stakeholder funds into the company scheme?

dunstonh

Depends on the company scheme. There are really too many variables there to give an exact answer one way or the other.

The co scheme may give you x number of years service for that value that could be worthwhile or could be poor value. If its a money purchase scheme, the funds in the scheme could be passive managed funds with limited growth potential and not able to give a diverse portfolio. Having some funds elsewhere investing in different areas to the pension funds could be more desirable.

MM2005

dunstonh wrote:

Depends on the company scheme. There are really too many variables there to give an exact answer one way or the other.

The co scheme may give you x number of years service for that value that could be worthwhile or could be poor value. If its a money purchase scheme, the funds in the scheme could be passive managed funds with limited growth potential and not able to give a diverse portfolio. Having some funds elsewhere investing in different areas to the pension funds could be more desirable.

OK, cheers for that.

EdInvestor

The question I have is, to make things simpler, can (should) she transfer the funds from her own private SL pension into the new company one?

It might be a good idea.

Is it an occupational money purchase pension scheme or a group personal pension scheme. If the latter the transfer is very straightforward, if the former it might not be advisable due to future inflexibility.

The most important benefit might be a possible reduction in charges: companies can get a 'bulk buy' reduction.

The other point is whether or not the same or better funds would be on offer.

Check these aspects out first.

MM2005

EdInvestor wrote:

It might be a good idea.

Is it an occupational money purchase pension scheme or a group personal pension scheme. If the latter the transfer is very straightforward, if the former it might not be advisable due to future inflexibility.

The most important benefit might be a possible reduction in charges: companies can get a 'bulk buy' reduction.

The other point is whether or not the same or better funds would be on offer.

Check these aspects out first.

It is a group pension scheme as far as I'm aware (although not not sure what the other is). I don't know what she is invested in with the stakeholder (fund-wise). The new scheme came with a booklet with details of the funds available - certainly not loads available (maybe 40 or so) but may be more than the stakeholder. At the monet she is invested 100% in the 'with profits' fund which is the default fund. I've told her to at least split the investments out to limt the risk etc. But I don't know anything really about which are best (is there anywhere we can look?). They do have 'risk' quota's against the funds listed but that doesn't particularly indicate performance...

Coveredinbees!!!!

she would know by now if she is eligable for share 'cus all the paper work has gone out.

As for transfuring check the management fees most stake holders are 1% the old fund fees may be lower

EdInvestor

First, don't move the old pension until after the demutualisation in July.

Find out what the charges are on both pensions.Confirm that the company one is a GPP.Find out what funds are available to both pensions.

Then post the results here and we can take a further look.