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Equalisation Form & Pensions

Hi all,

I'm after a bit of advice from someone who knows more about pensions than I do... basically, I have two pensions running one I don't pay into anymore from a previous job and one which is current (with my current employer.)

The old one, with Standard Life, says that they will not complete and equalisation form, so I can transfer the funds to my new pension.

When I called them they said it was "company policy..."

Can anyone give me some advice on if they can actually legally do this?

Thanks!
Slash

Comments

  • dunstonh
    dunstonh Posts: 118,574 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Standard Life to not issue discharge forms. You just do a letter saying you want to transfer it to xyz provider and send that letter to the new provider along with their application forms. The new provider will send their transfer forms and the letter to standard life who will then do the transfer.
    Can anyone give me some advice on if they can actually legally do this?
    Yes they can. However, as per above, you are just going about it the wrong way.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I am guessing that Standard Life are the trustees for an occupational pension scheme, which you joined when working for another employer ...?

    SL have been asked to give a warranty (a legal promise) that the scheme, as a whole, has equalised the benefits payable to men & women. I would also guess that this particular scheme was contracted out of SERPS and that your pension includes a Guaranteed Minimum Pension.

    SL can't sign the warranty - in fact, no trustee of any occupational pension scheme would sign this warranty, where a GMP is involved. The reason being that men have an entitlement to their GMP at age 65 and women at age 60, as that mirrors what SERPS provided. There is no law or guidance on how to equalise GMPs as State Pensions are excluded from the raft of laws we have on providing equal pension benefits.

    The Trustees of the new scheme will not accept the transfer without the warranty as they would then have to provide any increase in benefits, if the equalisation of GMPs is clarified in the future and it leads to an improvement in your pension.

    This is a common situation with no solution I'm afraid.

    You are almost certainly not losing out by leaving the pension where it is though.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
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