Company contributions into SIPP

jamesd

That would be the minimum they are obliged to do but they should also have to make the same scheme available to all. I'm just not certain that the rules do require this so someone who knows them better would have to comment on that.

I'm fortunate that the Standard Life scheme at work does allow transfers out at any time, but to a SIPP only. And that's apparently not in their standard terms but rather something that was agreed when I asked about it and explained that it was so it would make sense for those paying higher rate tax with minimal employee NI benefit - 1% at the time, 2% now - to make higher than minimum contributions to the work scheme instead of a personal one.

zagfles

jamesd wrote: »

That would be the minimum they are obliged to do but they should also have to make the same scheme available to all. I'm just not certain that the rules do require this so someone who knows them better would have to comment on that.

I'm fortunate that the Standard Life scheme at work does allow transfers out at any time, but to a SIPP only. And that's apparently not in their standard terms but rather something that was agreed when I asked about it and explained that it was so it would make sense for those paying higher rate tax with minimal employee NI benefit - 1% at the time, 2% now - to make higher than minimum contributions to the work scheme instead of a personal one.

Thanks - that's a good angle to tackle it from. The company will make significant NI savings in employer's contributions from people sacrificing salary to the company pension, so if they have to pay a bit more in admin for say an annual transfer out, it's dwarfed by the NI saving they're making. If someone is sacrificing £5000pa into a company scheme the company will save £690 in NI.

I'll ask mine. But as it's quite a large company I'm not sure they'll be as flexible..

dunstonh

Is there any way I can force the later ?

No. It is up to the employer if they allow it or now. The scheme administrator has to allow it as well.

jamesd

Mine is also quite large. In my case it's first two transfers free, later transfers £50 and must leave £5,000 in the account.

I haven't yet made a transfer. Not profitable to do so yet because there are some funds that I do want to use that are available at cost that makes sense.

jimmyjones_2

jamesd wrote: »

I'm fortunate that the Standard Life scheme at work does allow transfers out at any time, but to a SIPP only.

I was told by Standard Life that partial transfers to a SIPP were impossible with my work scheme. I will ask my employer in the hope of getting a different answer!