Pension with previous employer

sharker18

Hi

Wonder if anyone can help? I was auto enrolled into a pension with my old employer however I left in 2014. I tried at the time to transfer the funds from that pension into the pension scheme with my new employer however was told this couldn't be done as my old pension was less than 2 years old. I was recently told that I should be able to withdraw the money from that old pension and have it paid directly to me. I've contacted the pension company and have been told I can't withdraw from that pension until I'm 55 (which is 30 years away).

Are they right in saying this? Would people suggest I look again at transferring my old pension fund into my new pension scheme?

Sarah

molerat

It all depends on the type of pension as to what you can and can't do at the time of leaving employment. Who is it with and what type of pension is it ?

LULULU1

I have the same enquiry from my wife. She has a Barclays bank retirement fund pension scheme. She was in the scheme for just over 2 years. She has received a "statement of entitlement to a guaranteed cash equivalent" as she asked about transferring this pension to her Royal Mail one.

The guaranteed transfer value is £17,554. My question is can she leave this pension and take the full £17,554 when she retires instead of a £330 per year pension.

Also at what age can she take this lump sum (if possible)

Many thanks for any help

LULULU1

Just wondered if anyone had any views re the above post

AnotherJoe

LULULU1 wrote: »

I have the same enquiry from my wife. She has a Barclays bank retirement fund pension scheme. She was in the scheme for just over 2 years. She has received a "statement of entitlement to a guaranteed cash equivalent" as she asked about transferring this pension to her Royal Mail one.

The guaranteed transfer value is £17,554. My question is can she leave this pension and take the full £17,554 when she retires instead of a £330 per year pension.

Also at what age can she take this lump sum (if possible)

Many thanks for any help

The only people who can answer these questions with certainty are the Barclays pension organisers. Why not ask them?

Dandytf

LULULU1 wrote: »

I have the same enquiry from my wife. She has a Barclays bank retirement fund pension scheme. She was in the scheme for just over 2 years. She has received a "statement of entitlement to a guaranteed cash equivalent" as she asked about transferring this pension to her Royal Mail one.

The guaranteed transfer value is £17,554. My question is can she leave this pension and take the full £17,554 when she retires instead of a £330 per year pension.

Also at what age can she take this lump sum (if possible)

Many thanks for any help

I have done the opposite of your wife,
I was advised the leave my Royal Mail pension frozen when I left 1999 for a new career, was advised after 10 yrs post service not to try and transfer to my then new pension as 'it wouldn't be worth it'
I continue to receive statements and intend to withdraw full amount when i'm 65 I think.
I don't see any reason why your wife couldn't lift the full amount at retirement age.

Though maybe an expert will offer different opinion.

hyubh

LULULU1 wrote: »

I have the same enquiry from my wife.

By the sounds of it, not really, as the OP was concerned with a DC pension and you with a DB one.

She has a Barclays bank retirement fund pension scheme. She was in the scheme for just over 2 years. She has received a "statement of entitlement to a guaranteed cash equivalent" as she asked about transferring this pension to her Royal Mail one.

What are the benefits that would be bought in the Royal Mail scheme - is it DB too, or is it DC? If DB, what does the transfer estimate say (assuming your wife has got one)?

The guaranteed transfer value is £17,554. My question is can she leave this pension and take the full £17,554 when she retires instead of a £330 per year pension.

There is a statutory right to a CETV up until a year before the scheme's normal retirement age. However, the CETV (unlike the actual benefits) isn't isn't something that is going to stay constant over a long period of time. Also, taking the 'full' pension as cash, she wouldn't be banking the CETV, but taking a 'trivial commutation'. While the scheme may offer this, it could involve a different calculation and potentially interact with any other pensions she has.

Also at what age can she take this lump sum (if possible)

While the terms will have a statutory basis, different schemes have different trivial commutation rules, so she should ask the Barclays pension administrator where she stands on them.

jamesd

sharker18 wrote: »

Wonder if anyone can help? I was auto enrolled into a pension with my old employer however I left in 2014. I tried at the time to transfer the funds from that pension into the pension scheme with my new employer however was told this couldn't be done as my old pension was less than 2 years old. I was recently told that I should be able to withdraw the money from that old pension and have it paid directly to me.

The rules for defined benefit schemes like final salary allow payment of the employee part of the pension to the employee if it is within the first two years of starting. Transfers are also normally available up to the first two years mark and after that if the value is no more than £30,000.

There are no corresponding restrictions for money purchase pensions, but they do have the restriction that the money can't be returned to the employee in the first two years, it has to wait until age 55.

You appear to have been given guidance that can't possibly be correct. I suggest that you ask again, starting with the simple question of whether it is a defined benefit pension or a defined contribution pension. If it is DC, transfer it. If it is DB you could take what you paid in but not what your employer paid in if it's within two years of starting but a transfer is normally the best route if you don't want to leave it where it is.