Pension being wound up by PIC

quotememiserable

simpywimpy wrote: »

Surely then once this IFA provides his views in a letter, I just need to send his details to HL and we can proceed regardless?

that's right. you must take advice but there's no requirement to follow it, just that you make whatever decision you make with your eyes open. There's also no requirement to put the IFA on any kind of retainer, you can use him for this one transaction, pay his fee and end the relationship.

dunstonh

Surely then once this IFA provides his views in a letter, I just need to send his details to HL and we can proceed regardless?

Do HL ask to see the advice or just check to make sure you got advice?

e.g. if you get the statistically likely outcome of being told what you want to do is bad advice, will HL still do it?

The unknown bit is how the FOS will treat it. They dont generally take much notice of waivers signed by people saying that they want to proceed. They generally do not like firms transacting business that they know is likely not to be in the person's best interests.

Or how about borderline cases where perhaps it is good advice to do it using a cheaper IFA provider but would not be with HL (and their higher charges). If you realise years later that it was wrong, you could complain to the IFA but they can say you disregarded their advice and went with a different provider and investment option. HL can reject it saying that you sought advice and it wasnt them that gave it. You fall into that void that the FOS seems to be bad at dealing with at the moment where you get multiple firms involved.

Getting advice from HL and buying the product from HL improves your consumer protection. Getting advice elsewhere, not following it and buying through a different company reduces your consumer protection.

simpywimpy

we;ve signed a short letter giving the IFA authority to get info from the pension provider but at what point does he tell us what this is likely to cost? will be get the info and work out what is his best advice for us and the fees will be based on what product we get through him?

simpywimpy

Just received this email from Mercers/PIC explaining their rules regarding the pension.

I can confirm the SR Technics scheme is a final salary arrangement. It has always been final salary - all that will change, when the scheme wind up is complete, is that PIC will be responsible for paying your pension not the trustees of the scheme.

You will probably have seen media coverage of proposed changes to pensions in April this year where individuals can take their pension funds as cash instead of buying an annuity. These changes only apply to money purchase arrangements. There is a concern that people could rush to transfer from final salary to money purchase without fully understanding the implications.

After 6 April, anybody wanting to transfer from a final salary scheme to a money purchase scheme, where the transfer value exceeds £30K will have to confirm they have taken financial advice. Our standard documentation is being updated but we need to wait for this week's Budget speech just in case there are any surprises.

Before 6 April we do not need confirmation that you have taken financial advice - we would recommend you do but there is no legal requirement for us to get confirmation before we release the transfer value.

It may be HL are taking a more conservative approach and are bringing in the requirement early for their arrangements.

We would still recommend you take financial advice and after 6 April you will have to.

I suggest you call HL and ask if your transfer can proceed.



HL however, are now saying there is not enough time left on the forecast and want us to get another. I dont know why they couldnt have just opened the drawdown when we asked.

Daniel54

Reading the Mercer letter and the PIC website,it would appear that ,in return for finality,PIC have taken over the pension obligations of your husband's defined benefit pension scheme.

Have you acquainted yourself with those benefits ? They are not the same as an open market annuity.Most likely they will provide an inflation linked income for his life and a 50% spousal payment thereafter.Has your husband reached the scheme normal retirement age and what option is he being offered if he takes the 25% tax free lump sum? None of this is clear from your posts.

I don't know PIC , but would observe they are fully FCA regulated and PRA authorised .I would also observe it is not in their interests to offer an over -generous transfer value ,but neither is it in their interests to default on their assumed obligations.

It seems to me that you really should have independent financial advice on this,not just a box ticking exercise

Do report back once you have heard from the IFA

simpywimpy

They are only offering to transfer it into an annuity of their choosing which will not necessarily offer a lump sum payment. I presume seeing it is being wound up, the benefits of that particular pension will cease