Section 32 pensions

Skinty_2

Help!!!!
I took out a company pension many moons ago( bout 10 years) and they changed to a different provider after about 12 months of me joining, leaving me with a £900 pension(at the moment) that i cant touch or transfer.I called them and was told because its a section 32 I have to leave well alone , whats that all about???????:mad: :mad: :mad:

guardianangel

Whose scheme were you with? If you don't know what section 32 states, ask them for a copy of it, they have to give it to you if that's the reason why you can't touch it.

Skinty_2

Its with N.P.I and when I call they just say I cant take it till I retire (2041)

dunstonh

Probably best to leave it. NPI may be pretty poor (one of the worst) but there are likely to be guarnatees on this which value it higher than £900 on maturity.

Section 32 buy out bonds are treated as occupational pensions for transfer purposes.

guardianangel

Ok, they are right in saying that you can't touch it - i.e. withdraw it, since it is meant for your retirement.

However, I don't see why you can't transfer it. As far as I was aware, everyone has the right to transfer one pension to another. Like I said, you should request a copy of section 32 and check whether it states clearly that you definitely can not transfer.

The reason I say this is because there is a lot of paperwork to be dealt with if one deicdes to transfer pensions. And maybe they just can not be bothered?!?

Unless you have a very very secret pension (which I'm sure you don't) then there is definitely no reason why you can not transfer is as long as you do it within the regulations of your new pension provider (as some give a time limit, i.e. TPS gives one year to transfer).

Hope this helps! Good luck!

Skinty_2

but it's mine and I want it!!!!!Gimmeeeeeeee.
other scheme has 5+k just transfering to scottish widdows i think ,through a broker, think i'm gettin ripped off to be honest.

EdInvestor

You can't access pensions until you're 50 (55 from 2010).And you wouldn't want to transfer it because it will have a valuable guarantee attached.

I wouldn't waste your breath on this one;)

dunstonh

However, I don't see why you can't transfer it. As far as I was aware, everyone has the right to transfer one pension to another. Like I said, you should request a copy of section 32 and check whether it states clearly that you definitely can not transfer.

You can transfer it. The rules allow it. However, the receiving scheme may not accept it without an IFA signing off on it. They are treated as occupational pensions as I said. It is estimated that as many as 4 out of 5 section 32 buy out bonds are best left where they are prior to retirement.

The reason I say this is because there is a lot of paperwork to be dealt with if one deicdes to transfer pensions. And maybe they just can not be bothered?!?

Maybe they feel the liability to do it without an IFA when they know it would be wrong to transfer it is too much. It has nothing to do with paperwork. Many companies would be pleased to get shot of the section 32 liability.

but it's mine and I want it!!!!!Gimmeeeeeeee.
other scheme has 5+k just transfering to scottish widdows i think ,through a broker, think i'm gettin ripped off to be honest.

Have you actually analysed the benefits or are you transferring without a TVAS being completed?

EdInvestor

Have you got any details of the S32?

eg

Fund value

Guaranteed Minimum Pension (GMP) at retirement?