Transfer pension from NPI?

Any

Hi guys,
My OH has very old NPI pension pot, from many moons ago.
He recently looked into transfering it into his current company pension and requested Transfer value documents.

Looking at it, there is large MVR (market value reduction) charge. It is nearly third of the pot.
Also in "thinks to consider before transfering" there is a note that say that the fund monies are invested in has "guaranteed future annual bonus of 4% applied to accumulation units until age 75 is reached".

It sounds like a good deal. I believe this pension plan was set up when long time ago people were opting out of secondary NI contributions...
While I know a bit about funds and modern pensions (due to researching my own) I don't know much about this kind of pension and I am wondering whether this is one of those where experts actually recommend to stay with?

I would appreciate any advise on the NPI

Thank you

elouise01582

This plan will be a With-Profits pension which is why NPI are talking about a market value reduction (MVR). Since April 2012 it is no longer possible to contract-out of SERPS or the state second pension (S2P) through a Personal Pension so although the pot may be growing by 4% per annum there are no contributions going in. The MVR should be removed when your OH reaches age 65 (and this would even be the case for women even if they had an earlier state pension age) so you will need to weigh up what you could do with the 25% lump sum and pension income available from the pot before deciding if you want to defer until later than age 65 years. Also the retirement quotation you receive from NPI/Phoenix Life are unlikely to be competitive so do ensure that you search the pension annuity market. These days pots that originate from contracting our have all the same options as those which originate from monies paid in by the member or employer so you may wish to obtain advice on the best thing to do with the pension pot. Hope this helps.