New EU Directive Affecting Company Pensions

fivetencke

THEN: In 1993 I was advised by an independent financial advisor to join a personal pension plan when I should have been advised to join my companies occupational scheme. At this time, I was unable to transfer into the company plan due to their plan rules. Having realised I had been wrongly advised, I successfully sought redress through the “The Investors Compensation Scheme” for mis-selling

NOW: Changes brought in on 1st December 2006 to my companies pension plan under a new EU directive, now make me eligible to join my companies plan, which would give me 12 pensionable years service before retirement.

Before speaking with a financial advisor, I would be interested hearing from anyone who is in a similar situation. Some questions:

1) What should I do with my current personal pension?
2) Have been told that I can transfer it into the company plan?
3) What benefit would this be to me? Would it make up for lost years of pensionable service?
4) Is the compensation I received “safe”? I was assured at the time the that whatever happen in the future ie. join another company, it was un-touchable
5) And any other complications anyone can think of with this situation?

Thanks in anticipation, fivetencke

EdInvestor

1) What should I do with my current personal pension?
2) Have been told that I can transfer it into the company plan?
3) What benefit would this be to me? Would it make up for lost years of pensionable service?

You need to find out the "transfer value" of the PP and then ask your company pension department how many years of company pension it would buy if you transferred the money in. Then you can see if it's a good deal or not.

4) Is the compensation I received “safe”? I was assured at the time the that whatever happen in the future ie. join another company, it was un-touchable

Presumably this redress money has been added to your personal pension and invested with the rest of the money?If so, it is subject to all the usual risks of investment in personal pensions.

dunstonh

If you transfer, you will lose any further protection under the mis-selling rules. They will enhance the transfer value required upto the point of transfer making a number of assumptions (typical growth rate for example) but once you have moved it, they dont have to again.

EdInvestor

I suggest you write to them asking them for details about how the redress money is cacluated, when it is added to your fund, unless you have already been told this when you were informed you would get it.If so, look up thre paperwork.It may be this redress money acts as a kind of informal guarantee.