Sipp and ongoing employer contributions

jackiehp

Hello I am still fairly young at 36 and wanted to transfer my existing defined contribution pension into a SIPP. My question is, does this mean I lose any future employer contributions? Is it possible to transfer out what is there but allow my employer to continue to contribute into the company scheme, ie to do a partial transfer?

dunstonh

My question is, does this mean I lose any future employer contributions?

In most cases yes. Although some may allow you to leave the scheme, transfer it and then rejoin.

jamesd

Ask. It's entirely possible in law and there are typically benefits to the employer and employee from allowing it, perhaps with a small administration fee charged to the employee.

Particularly if it's a salary sacrifice scheme where the employer keeps some of the saved employer NI there's an incentive for the employer to maximise your initial payments into it and accept that there will be some transferring out later, when it doesn't cost them the NI money they have already saved. Even without that an employer should understand that not all employees will have investments within their chosen scheme that match the risk tolerance and investment knowledge of all employees.