Unable to transfer pension

Spudsey

Actually asking on behalf of an irate work colleague who was too late to opt out of our company pension and now has been told he is unable to transfer his funds to his private pension.
Our company has told him that the 2 months monies he paid in which don't amount to a great deal can't be refunded back to him. So if his monies can't be transferred either I am assuming he has lost the money?

dunstonh

So if his monies can't be transferred either I am assuming he has lost the money?

No. Its means the money stays in the pension.

Actually asking on behalf of an irate work colleague who was too late to opt out of our company pension

Why would he want to opt out? The vast majority of people who opt out are making very bad decisions.

Linton

Why does he want to opt out of his employers pension? Does the employer contribute? If so it would be foolish to not take advantage.

Has he lost the money? I would have thought it should stay there, presumably gaining in value, until he can access it. Perhaps when he leaves the company or retires.

Spudsey

dunstonh wrote: »

No. Its means the money stays in the pension.


Why would he want to opt out? The vast majority of people who opt out are making very bad decisions.

Ah sorry being dumb, so the small amount of money he has paid in just stays there. Doh!


He already has a private pension and can't afford to do both. He also has in his head that if our company went bust then he would lose his money.....

Spudsey

Linton wrote: »

Why does he want to opt out of his employers pension? Does the employer contribute? If so it would be foolish to not take advantage.

Has he lost the money? I would have thought it should stay there, presumably gaining in value, until he can access it. Perhaps when he leaves the company or retires.

Yep they contribute

Linton

Spudsey wrote: »

Ah sorry being dumb, so the small amount of money he has paid in just stays there. Doh!


He already has a private pension and can't afford to do both. He also has in his head that if our company went bust then he would lose his money.....

He is wrong. If it was a Defined benefit (final salary) scheme which it almost certainly isnt, there would be protection. If it's a DC scheme that invests in funds the money will be safely held by a pension or insurance company and would have nothing to do with the employers finances.

Spudsey

Linton wrote: »

He is wrong. If it was a Defined benefit (final salary) scheme which it almost certainly isnt, there would be protection. If it's a DC scheme that invests in funds the money will be safely held by a pension or insurance company and would have nothing to do with the employers finances.

Thanks for that, I assumed he would be wrong as well but as I don't know all the facts I didn't say anything.

xylophone

If he can't do both has he considered suspending contributions to the PP and in favour of the occupational pension so as to get the employer contributions?

Would a transfer of the PP into the occupational pension (if possible) be worth considering?

dunstonh

He already has a private pension and can't afford to do both. He also has in his head that if our company went bust then he would lose his money.....

Also, if he went to top up the existing scheme, he would be classed as an opt out and they would not allow it. There is no logical reason to opt out of a scheme that gives free money to be in one that does not. If he cant afford both then he stops the existing scheme to be in the employer one.

hugheskevi

dunstonh wrote: »

Also, if he went to top up the existing scheme, he would be classed as an opt out and they would not allow it.

Out of interest, how would the personal pension provider know about the employer based pension provision?

My SIPP provider doesn't ever ask me about my occupational pension, and I'm almost certain there weren't any details requested when I transferred my pension to them a few years ago (from another personal pension).

dunstonh

Out of interest, how would the personal pension provider know about the employer based pension provision?

A number now ask the question on their application when its regular contribution.