Pension Reciprocation Plan - Is this legal?

bournemouthR

I would like to direct your attention to this thread - take a deep breath first!

I am not aloud to post links, however if you type in 'Anthony Chewins' into google, there should be a long thread on 'whocallsme'

or alternatively type in this contact number 02081331548 and read the 'whocallsme' thread. You'll be amazed at what we have uncovered!

The_Sherrif_2

Hi i'd like some advice on a frozen company pension i have.I am 43 years old and the frozen pension is worth 80k.I looked at a web site from pensionloans4u who offer to give you 10% of this to transfer to another pension fund managed by London and Colonial based in Gibralter.I was wondering if this is safe and would anyone recommend me doing this.I could really do with the money...!

noh

I was wondering if this is safe and would anyone recommend me doing this.

Nooooooooooooooooo!

dunstonh

Hi i'd like some advice on a frozen company pension i have.I am 43 years old and the frozen pension is worth 80k.

For the pension to be frozen that would indicate it is a final salary scheme that was frozen back in the 80s (as frozen cannot apply to other schemes). So, where does this £80k come from?

.I looked at a web site from pensionloans4u who offer to give you 10% of this to transfer to another pension fund managed by London and Colonial based in Gibralter.I was wondering if this is safe and would anyone recommend me doing this.I could really do with the money...!

HMRC allows loans to be made from the pension which are for the benefit of the pension scheme. Note that last bit. HMRC can fine you for inappropriate and unauthorised payments.

If you look at many of these offshore unregulated [STRIKE]scams[/STRIKE] companies, you will see that they take a big chunk of your pension (on top of the amount you already lose if you transfer a final salary/defined benefit scheme) and then they use their in-house investment scheme to cream off a level of charges that will likely see the fund erode AND they have an interest rate on the loan that will likely be higher than the long term average return which will again see the pension fund erode.

A good general guide is that the scam companies tend to refer you from company to another and nearly always involve an overseas company somewhere. That should put you on guard.

The_Sherrif_2

Thanks for the advice - it was frozen in the 90's and its actual transfer value is 80k.One of my concerns is if i did this and it went pear shaped what protection would i get.?

dunstonh

One of my concerns is if i did this and it went pear shaped what protection would i get.?

None whatsoever.

The companies that do this are nearly always outside of FSA regulation. Many used offshore arrangements. HMRC rules are being bent and you are responsible for that (not them). Plus, you can usually spot the dire terms in their t&c so you cant really complain about it later.

Ian_W

The_Sherrif wrote: »

.One of my concerns is if i did this and it went pear shaped what protection would i get.?

None, zero, zip, zilch - you choose.

Why would you get protection using an overseas unregulated company? They're a scam, you have to protect yourself from them.

Oh, and BTW, if they have your contact details expect some plausible "stockbroker" to ring you unsolicited about some marvellous opportunities to make a mint from shares. Google "boiler room scams" for a fuller explanation.

The_Sherrif_2

Sorry to mention this again but London and Colonial are under the banner of our equivalent of the FSA i believe so as an EU citizen surely i must be protected - they are on a list i checked.

dunstonh

The_Sherrif wrote: »

Sorry to mention this again but London and Colonial are under the banner of our equivalent of the FSA i believe so as an EU citizen surely i must be protected - they are on a list i checked.

That doesnt cover the bad advice. You will find it is processed as non-advice. So, when you pension has eroded down to zero, you wont be able to complain about it.

Why do you think that UK regulated companies are not doing it?

The_Sherrif_2

So in a nutshell if i transfer it over i'll get 8k now for the transfer " free " but the other 72k less 6% fees will just slowly get wiped out and in the long run it would be financial suicide?So what i should do is just leave it where it is.Am i covered if the company who has my frozen pension ceases to trade.? This whole pension buisness seems like a minefield on who can you trust.