Cost of transferring in to an employer's PP plan

Innys

Hi

I am considering merging the three other employer PP plans with that of my existing employer. I want to do this so that I can keep an eye on the money and manage the funds it is invested in myself.

I have now got the first transfer value quote in. The thing is the caveats on the transfer form state that I may incur "a loss of tax free cash protection".

My question is what does this mean? Is is that the entitlement to 25% of the cash tax free at retirement is lost, for the funds transferred in by doing the transfer? I would not be happy about that at all!!!!

I know I shouldn't seek financial advice on here, but this is just a question of the consequences of such a transfer

Thanks in advance

I

dunstonh

If you have pension primary or enhanced protection or the schemes still benefit from the ability to take more than 25% pension commencement lump sum, then you may lose this ability on transfer and be capped back to 25%.

Innys

Dunstonh - just to be clear, are you saying that the money I transfer across would be eligible to 25% tax free cash, as a minimum, assuming current legislation is in force at the date of my retirement?

Thanks

dunstonh

25% as a maximum if you transfer. However some schemes pre A day allowed more than 25% and if you applied for protection, you were allowed to keep that. Transferring "may" lose that enhancement.