Leaving a pension scheme

kredders101

Hi,

I have just changed jobs and my older employer wrote to me 5 weeks after leaving saying I have 12 weeks (from my leaving date, so 7 from that date) to either transfer to a new provider or they will refund (and I will lose employer contributions and have to pay N.I e.t.c.). This was because I was in the scheme for less than 3 years.

My new employer doesn't usually open this up except at specific intervals but I have managed to get them to. However by the time the paperwork is completed it will be too late, the 12 week deadline from when i left will have passed (the new pension won't be open technically until I pay my first contribution which will be 13 weeks after I left at the earliest and then they need to process the transfer forms and send to my old pension).

I have called my old pension provider who basically said tough luck, so I have emailed them outlining my reasons in the hope they will extend the deadline.

However, what are my other options? Can I complain about this? They suggested opening a private pension, but I don't really want to contribute to that as well as my occupational one - is there one I can open and just transfer this amount in? Are there tax implications e.t.c? I know you can't give me IFA type advice but the amounts arent huge (about 3000, of which I stand to lose 2500) so I think going to an IFA maybe excessive yet it is still galling to think I could lose all that money.

Many Thanks!

dunstonh

However, what are my other options?

Transfer it to another pension.

Can I complain about this?

No.

They suggested opening a private pension, but I don't really want to contribute to that as well as my occupational one

You dont need to.

Are there tax implications e.t.c?

no.

Loughton_Monkey

This is simply not a problem. Do as suggested and transfer it to any pension of your choice. Tomorrow!

Then wait until you are eligible for your company one and, if better, transfer it to that.

thenudeone

Or accept the refund from the old scheme, wait til the new one is running, then make a one-off additional voluntary contribution.

It won't put you in exactly the same position (because of the difference between the deemed tax deduction and your personal tax rate) but it won't be far off.

molerat

thenudeone wrote: »

Or accept the refund from the old scheme, wait til the new one is running, then make a one-off additional voluntary contribution.

It won't put you in exactly the same position (because of the difference between the deemed tax deduction and your personal tax rate) but it won't be far off.

Plus loss of employer contributions !

kredders101

Thank you very much for the responses.

Where is the best place to search for pensions? I don't really need advice I just want to get it in somewhere!

There is an added complication as I work in Audit so independence rules means only certain providers are ok for me as we work with a fair few of them. Axa is one of them but you have to through an IFA and they want to charge me £300 just to sign the form! Therefore I need to search for a provider I can clear with independence that doesn't have a minimum contribution nor a mininum start up value and doesn't need me to go through an IFA! I can't seem to find a decent search comparison!

I will lose £2400 (ish) if I take a refund due to employer contributions and N.I/Tax deducted. Although this doesn't make a huge amount of sense to me as the total indicated value of the pension is £2900 with an indicated refund value of 571 - yet the employer was contributing the same % as I was. I am in BR of IT.

ffacoffipawb

kredders101 wrote: »

Thank you very much for the responses.

Where is the best place to search for pensions? I don't really need advice I just want to get it in somewhere!

There is an added complication as I work in Audit so independence rules means only certain providers are ok for me as we work with a fair few of them. Axa is one of them but you have to through an IFA and they want to charge me £300 just to sign the form! Therefore I need to search for a provider I can clear with independence that doesn't have a minimum contribution nor a mininum start up value and doesn't need me to go through an IFA! I can't seem to find a decent search comparison!

I will lose £2400 (ish) if I take a refund due to employer contributions and N.I/Tax deducted. Although this doesn't make a huge amount of sense to me as the total indicated value of the pension is £2900 with an indicated refund value of 571 - yet the employer was contributing the same % as I was. I am in BR of IT.

Try Hargreaves Landsown www.h-l.co.uk or Sippdeal www.sippdeal.co.uk. Hargreaves have a minimum TV acceptable of £5,000 so you can still try Sippdeal which don't appear to have a minimum TV (but they have a minimum single contribution of £1,000). You don't need to pay any more to either of these providers if you don't want to.

Otherwise try an Aviva stakeholder.

It doesn't matter where you put it in the short term, as long as you move it somewhere so you don't lose the employer contribution!

You can always move it on to your new employer's scheme when eligible and assuming they'll accept it.

thenudeone

molerat wrote: »

Plus loss of employer contributions !

Yes, I forgot. My employer stopped making contributions two years ago so it slipped my mind!