Can I transfer the money from pension scheme of my current employer?

HardCoreProgrammer

I have about 20000 pounds in a pension scheme (AEGON). I sacrifice some of my salary and in return my employer makes a monthly contribution.

I now want to move the money to another provider (Fidelity) but keep the existing scheme open so employer contributions can continue to be made.

Does anybody know if this is possible at all please? I searched the internet but found nothing.

Linton

Depends on the rules of your employers scheme.

Why do you want to transfer?

puk999

My employer's pension scheme is with Standard Life (also have about £20k there). They wouldn't let me transfer the monies to my SIPP (also Fidelity) and keep the scheme open. They said the monies could only be transferred on closure of the plan. It might be different with Aegon. As Linton says, you need to check.

puk999

After posting I remember reading a thread months ago where someone claimed they do this every year. I can't remember who their provider was. I can't find that thread yet but found this one:

https://forums.moneysavingexpert.com/discussion/comment/57313723#Comment_57313723

ukjoel

Am pretty sure it varies by provider and their t&cs.

I checked with mine last year (as enjoying he salary sacrifice benefits) and they were ok, but a previous employer wont let me move my pension from their AVC without closing my final salary.

Check the T&Cs.

HardCoreProgrammer

Thank you everyone for your replies.
AEGON confirmed that I can move the funds but keep the pension open. All I need to do is to sign a discharge form (can download from their website) and send it to Fidelity with the transfer request.

This should reduce the tracker fund charges from 0.9% pa to 0.42% pa (0.35% platform fee + 0.07% fund cost).
I will call AEGON next week to find out if it is possible or whether there are charges for in specie transfers and then update this thread.

Your_Hero

HardCoreProgrammer wrote: »

Thank you everyone for your replies.
AEGON confirmed that I can move the funds but keep the pension open. All I need to do is to sign a discharge form (can download from their website) and send it to Fidelity with the transfer request.

Be careful on this. I would ask another staff at AEGON again or for them to confirm in writing. Quite often AEGON's staff will say one thing and then it turns out that their systems don't allow it.

puk999

HardCoreProgrammer wrote: »

Thank you everyone for your replies.
AEGON confirmed that I can move the funds but keep the pension open. All I need to do is to sign a discharge form (can download from their website) and send it to Fidelity with the transfer request.

This should reduce the tracker fund charges from 0.9% pa to 0.42% pa (0.35% platform fee + 0.07% fund cost).
I will call AEGON next week to find out if it is possible or whether there are charges for in specie transfers and then update this thread.

Your thread prompted me to look into my employer's Standard Life pension closer. Called them and they said (again) I'd need to close the plan if I wanted to transfer. I will ask the lady who does the payroll, etc. if she's willing to stop contributing to the plan and create another.

My experience on charges echoes yours. What's available on Standard Life (Group Personal Pension One Fixed) is much more expensive than what's available on Fidelity. It'd also make it much easier from a portfolio control/analysis point of view for it to all be in one place.

I hope what AEGON told you pans out.

puk999

By the way, have you opened your Fidelity SIPP yet? You can go via Cavendish Online and save 0.05%.

jamesd

puk999 wrote: »

my employer's Standard Life pension closer. Called them and they said (again) I'd need to close the plan if I wanted to transfer. I will ask the lady who does the payroll, etc. if she's willing to stop contributing to the plan and create another.

I have an SL plan at work. I asked my employer and they arranged for the plan to include two free transfers out and unlimited others at about £50 a time. Your employer may well be able to arrange the same.

In any case if your employer is in the auto-enrollment system they are required by law to both let you opt out at any time and to offer you the option to opt in again at least once per year. They don't get discretion in this, it's the law. So you could perhaps opt out just before the normal probably annual enrollment date, then enroll again. This sort of reason is why it's pretty pointless to make it hard to transfer out. It's too easy to work around and not worth irritating the scheme members.

puk999

We're not in auto-enrollment at the moment, but that's a good idea which I'll remember for the future.