Pension transfer for employees with <12 months service

Gary0371

Hi all,

Newbie here who is looking for some help/advice please.

I was made redundant from my previous job with HSBC in June last year, and was a member of their staff pension scheme. I did not make any pension contributions through salary sacrifice, all contributions were made by my employer.

After leaving HSBC, I received a letter advising that I had up until a certain period of time to transfer the value of my pension to another pension plan. If I did not do this by the 23rd October 2012 I would lose the option of transferring the benefits and no more benefits would be payable to me from the scheme. This is the exact wording from the letter.

Stupidly, I assumed that this meant that my small pension would remain with HSBC but would not attract any more growth or benefits, and would in fact be frozen.

Upon calling HSBC today, they advised me that this pension had now ceased and I would not be entitled to any benefits. I explained that I didn't have another job to go to at that time so couldn't transfer to a new employer. They advised me that I could have set up a personal pension and transferred it there, but without a job and no income I didn't think this was appropriate.

Is there anything I can do to get this reinstated please? It's only £1700, but I'm loathe to lose it due to me misreading their letter and not acting on time.

Apologies for the long post, and thanks for your help!

Regards

Gary

mania112

its brutal and unfair, but within the first 2 years of service they are allowed to do it.

Not much else to say unfortunately, the pension is dead.

atush

Yep, it is gone. Too bad you didn't ask here before.

But at least you know now. Good luck finding new employment if you haven't already. And when you do, join the pension and keep up with things this time.

dunstonh

Stupidly, I assumed that this meant that my small pension would remain with HSBC but would not attract any more growth or benefits, and would in fact be frozen.

Frozen is a very specific term that can only apply to a certain type of pension from the past. It is best not to assume things.

I explained that I didn't have another job to go to at that time so couldn't transfer to a new employer. They advised me that I could have set up a personal pension and transferred it there, but without a job and no income I didn't think this was appropriate.

Your assumption was wrong there as well. You can move it to a personal pension, stakeholder or SIPP even if you are not working.

Is there anything I can do to get this reinstated please? It's only £1700,

Go back to the administrator for the scheme and tell them you missed the deadline and ask them if they will still allow it to be transferred now. They may well say yes. It is at their discretion to do so.