Pension company transferred leftover SIPP cash to Charity.

thejaminthecity

I was slightly surprised my pension company decided to transfer the residual £15 after my SIPP transfer to a charity without permission. The only communication I received was a statement entry. I don't believe there are ongoing charges for cash held and there is every possibility I might still use the account in future. I'm not bothered but it all seems a bit strange. Can't find any information on the subject.

greatkingrat

Presumably there is a minimum balance in their terms and conditions?

Marcon

Doesn't sound as if you have asked the pension company - perhaps do that as the best way to get an answer?

Dox

thejaminthecity wrote: »

I don't believe there are ongoing charges for cash held and there is every possibility I might still use the account in future. I'm not bothered but it all seems a bit strange. Can't find any information on the subject.

'Don't believe' or 'know'? There's a difference!

Ask the pension provider. Nobody here will know; we haven't had sight of the terms and conditions on which you signed up.

System

I had £86 left in a SIPP once after the bulk had been transferred to another provider - it was a late dividend or some payout made months after the pension had been transferred.
They simply posted me a personal cheque to clear the balance. I was surprised that they didn't attempt to transfer it on to the new provider.

Malthusian

thejaminthecity wrote: »

I don't believe there are ongoing charges for cash held and there is every possibility I might still use the account in future.

Then you should have kept the minimum balance in there, which will almost certainly be detailed in their T&Cs. It's not reasonable to expect a company to continue administering an empty pension account for free. But no use crying over spilt milk.

Some companies would simply have pocketed the £15 rather than given it to charity, again in accordance with T&Cs.

Clifford_Pope wrote: »

I had £86 left in a SIPP once after the bulk had been transferred to another provider - it was a late dividend or some payout made months after the pension had been transferred.
They simply posted me a personal cheque to clear the balance. I was surprised that they didn't attempt to transfer it on to the new provider.

I think there may be HMRC exemptions which cover this situation although I'm not sure where to find the chapter and verse. If they'd sent it to the new provider it might have created more complications than it was worth, especially if the SIPP was in drawdown (the new provider would have to open an entirely new tranche for the £86).