Move it or lose it: can employers really do this?

dongennl

Hi, I recently moved on to a new job and was with my previous employer for only one year and 2 months (it wasn't a great job!)

I paid pension out of my wages each month while I was there and the employer added contributions (higher than mine).

Now I've received a letter that I need to move my pension elsewhere within 2 months or I will lose all the employer contributions (about £8k). None of my previous pension plans will receive a transfer and not sure I can get a personal/private plan set up within this deadline.

Can they just do this? What are my legal rights here? Should I object?
Thanks for any insights!
B

Your_Hero

dongennl wrote: »

Hi, I recently moved on to a new job and was with my previous employer for only one year and 2 months (it wasn't a great job!)

I paid pension out of my wages each month while I was there and the employer added contributions (higher than mine).

Now I've received a letter that I need to move my pension elsewhere within 2 months or I will lose all the employer contributions (about £8k). None of my previous pension plans will receive a transfer and not sure I can get a personal/private plan set up within this deadline.

Can they just do this? What are my legal rights here? Should I object?
Thanks for any insights!
B

You either transfer it in whole or you opt for a 'refund' of premiums which will just be your own contributions (subject to tax, NI etc.).

For that amount, you can quite easily open a pension yourself. There are many online providers that can do this.

From the sounds of it, you may wish to consider consolidating your previous pensions too as this could be beneficial. If you need to speak to an independent financial adviser, go to www.unbiased.co.uk and pop your post code in.

DaveMcG

Here is some info from the Pension Regulator about the issue

http://www.thepensionsregulator.gov.uk/codes/code-early-leavers.aspx#s1882

Note that if you don't reply or delay replying they can refund contributions.

rpc

Two months should be plenty of time provided you don't hang about.

Go see an IFA if you want, or DIY if you want.

This is not a recommendation, but you could do worse than starting here: http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/transfers-and-repensioning/

PeacefulWaters

Can you transfer it to your new employer's pension scheme?

If not, Cavendish is probably as good an answer as any.