Transfering a small pot without high fees?

RunningHare

Just want to know if anyone has had this situation and if there's a solution. I have a small pension gained from a 4 month period of employment last year in local government. The pension scheme rules say that members need to be employees in the scheme for a minimum of 2 years in order to retain the plan. Otherwise contributions can be reclaimed or the pot transfered. Since the employee contributions were 22% of salary, there is far better value in transfering the pot. However, the only other pension plan I have that I can transfer into is with the Pru. They say that to make the transfer I need to consult with an adviser, which will cost me a %, or a flat fee probably over £100! Do I have any other options? Is there a scheme I can join to claim this pot and transfer into which is low cost or free? Thx

xylophone

They say that to make the transfer I need to consult with an adviser,

This must be some requirement of their own - although DB, it seems unlikely that your LGPS would be valued at greater than £30,000.

Give Hargreaves Lansdown a ring and explain your exact situation (ie that you have just four months in a DB plan and must transfer out) and see if they will open a SIPP for you.

Otherwise, you might try a transfer into a stakeholder after ringing to explain the exact situation.

https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

[Deleted User]

Hello running hare,
If the CETV is under £30,000( ie no requirement for advice) you can open a SIPP with AJBELL and they will handle the transfer online, fee free.
Regards,
mrwmartin

dunstonh

Most personal pensions will not accept a DB transfer in without an adviser signing off on it. Regardless of the £30,000 rule. A small number will (as one mentioned above).

Albermarle

Also if you are able to open anew pension and transfer the fund out , then if you wanted to it might be the next step to transfer your Pru pension to the new one .It depends exactly what kind of pension you have with the Pru and how charges and other things compare with the new one.

RunningHare

Many thanks for the replies. I've been contacted by a local Pru rep after I sent them the forms - he says they can't take the transfer in now anyway as it's below their threshold. So, I will follow the tips here and investigate a SIPP or stakeholder scheme or transfering the funds into one of my wife's personal plans, if allowed.

Silvertabby

No advice needed in this case, as OP has less than the 2 years membership needed to be entitled to actual pension rights - so he has no DB benefits to give up.

His only choice is a refund of his own contributions (less tax) or, the better option, a transfer. However, I expect that the low value of the transfer will continue to be a problem.