Documents required by Mercers to transfer DC pension

saver_ali

We're having problems transferring my husband's DC pot from Mercers to his HL sipp. We kicked it off by sending the signed transfer forms to HL at the beginning of June.

HL have been excellent but Mercers are either incompetent or using delaying tactics.

Can someone tell me what documents and forms are normally required? Here's what we've sent so far....

The original HL transfer application form, which we sent on 3rd June. We didn't have to send passport or any other id as we'd done all this on a previous pension transfer from Aviva to his HL Sipp, which went very smoothly.

On 24th June, HL received a transfer pack from Mercers, which they passed to us. The cover letter said "the scheme details form enclosed has recently been updated based upon guidance from our fully qualified IFA team, and we are confident that further information SHOULD NOT be required." (Should not was underlined. ) The pack included Mercer's Application to transfer benefits form, with various declarations, which we returned and HL forwarded on to Mercers on 10th July.

Still no progress, so we've chased again. Mercers now apparently want more information. This is despite their earlier letter saying no further information was required. They now want my husband to complete and send:
1. Transfer declaration form
2. Independent advice form
3. Original passport or original driving licence
4. Original marriage certificate

Looking at the list of documents they want now (according to their email - they haven't sent the letter or new forms yet) I'm thinking:

1 is just a duplicate of the Application to transfer that we sent weeks ago;

2 was covered in the original form we sent to HL at the beginning of June. It's a DC pension so we don't need an IFA to transfer.

3 Do they really need them when HL have already confirmed my husband's identity. We're reluctant to hand over original documents such as a passport or driving licence as I have no faith Mercers won't lose them, or will take weeks to return them.

4 Why do they need a marriage certificate? Surely whether or not he is married has nothing to do with transferring out a pension.

I'm perfectly happy to push back on Mercers, for all the good it will do, but would like to know my facts before I do.

I have one other thought, my husband also has a completely separate DB pension with them, which he won't be taking until 2023. Do you think they have got confused and think we'd are trying to transfer out the DB pension instead of the DC?

Can anyone comment on whether all this is normal practice and reasonable?

Many thanks.

SonOf

Can someone tell me what documents and forms are normally required?

If the ceding scheme is money purchase and there are no safeguarded benefits then the following will apply:

If both sides use Origo Options, then no documents are required. I don't believe Mercer use Origo. So, it would revert to the old paper method.

Receiving scheme rarely has any documents but some have a transfer in form
Ceding scheme will usually have a discharge form (some dont but Mercer will).

Still no progress, so we've chased again. Mercers now apparently want more information. This is despite their earlier letter saying no further information was required. They now want my husband to complete and send:
1. Transfer declaration form
2. Independent advice form
3. Original passport or original driving licence
4. Original marriage certificate

Technically, identification is not required on transfers but some do ask for it.
However, the key thing here is the independent advice form. This suggests it is either a defined benefit scheme or there are safeguarded benefits. Or it is a clerical error.

2 was covered in the original form we sent to HL at the beginning of June. It's a DC pension so we don't need an IFA to transfer.

Just to clarify. You say it is a DC pension. Are there any safeguarded benefits? Such as GMP or a final salary underpin?

3 Do they really need them when HL have already confirmed my husband's identity. We're reluctant to hand over original documents such as a passport or driving licence as I have no faith Mercers won't lose them, or will take weeks to return them.

4 Why do they need a marriage certificate? Surely whether or not he is married has nothing to do with transferring out a pension.

Marriage cert is often required if there is GMP or spouse benefits. However, occupational pensions often have requirements that may appear dated and unnecessary compared to retail pensions.

I have one other thought, my husband also has a completely separate DB pension with them, which he won't be taking until 2023. Do you think they have got confused and think we'd are trying to transfer out the DB pension instead of the DC?

Quite possible. Especially if the transfer forms originally sent didnt give the proper scheme name (i.e. the one that includes the original employer name or the name it is come under. e.g. if they just said something like "Mercer pension" then it could easily be that they are looking at the DB scheme).

Can anyone comment on whether all this is normal practice and reasonable?

You should give HL a call. After all, you are paying them to do this transaction and they are quite expensive. So, you shouldnt feel bad about speaking with them. HL tend to be quite good with the service side.

xylophone

However, the key thing here is the independent advice form. This suggests it is either a defined benefit scheme or there are safeguarded benefits. Or it is a clerical error.

See

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

You are sure that (assuming Mercers have the correct scheme), that the DC pension has no safeguarded benefits?

saver_ali

Thanks for your comments. I'm beginning to think they have got the schemes muddled up at the Mercers end.

It is a very straightforward DC scheme, with no guaranteed benefits, spousal benefits, GMP, or anything like that.

The transfer forms definitely had the right scheme name. The DB scheme is with a totally different employer.

I must stress that HL have been very helpful, and I have no complaints about them whatsoever. They have automatically chased without me requesting it. It's Mercers who have been very frustrating.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/75884990#Comment_75884990

His ex-employer is a major corporation, and this plan was only set up in 2018. I've checked over all the paperwork from when the new plan was introduced (investments from the old plan were transferred across), and there is no mention of withdrawal options.

Just a thought - did the "old plan" have any safeguarded benefits?

If so, I wonder whether they transferred across?

saver_ali

xylophone wrote: »

Just a thought - did the "old plan" have any safeguarded benefits?

If so, I wonder whether they transferred across?

Thanks for being so observant that I had mentioned this on another thread! The previous scheme had no guaranteed benefits either. My husband joined the company in 2011, so that was a relatively modern scheme too. I've just double checked all the paperwork from both, and there is no mention of any guaranteed or spousal benefits.

The Mercers helpline told me that it is a requirement to get advice for any DC pension transfer over £30k.

SonOf

The Mercers helpline told me that it is a requirement to get advice for any DC pension transfer over £30k.

Only if there are safeguarded benefits. I would suggest ringing them up again and ask them what are the safeguarded benefits that are triggering this requirement.

If they cannot tell you (or there is none) then make a complaint to the pension advisory service. It would be farcical if Mercer dont know the rules.

Albermarle

The Mercers helpline told me that it is a requirement to get advice for any DC pension transfer over £30k.

They are completely wrong if there are no safeguarded benefits . You need to escalate this at Mercer to a higher level than the help desk who clearly are badly trained.

saver_ali

SonOf wrote: »

Only if there are safeguarded benefits. I would suggest ringing them up again and ask them what are the safeguarded benefits that are triggering this requirement.

If they cannot tell you (or there is none) then make a complaint to the pension advisory service. It would be farcical if Mercer dont know the rules.

Thanks for confirming that. I will ask them, as you suggest. The trouble is that you only speak to the people on the helpline, and they have to pass the message on to the processing or admin teams. I've been promised a call back this afternoon, but not holding my breath.

I will certainly make a complaint at some point. Should that's be to the PAS or the pension ombudsman?

saver_ali

Albermarle wrote: »

They are completely wrong if there are no safeguarded benefits . You need to escalate this at Mercer to a higher level than the help desk who clearly are badly trained.

I did ask that today! Didn't get very far, but I won't give up. My husband says I've been very "assertive". :-)

xylophone

The Mercers helpline told me that it is a requirement to get advice for any DC pension transfer over £30k.

See link in my previous.

Circumstances in which advice is required
Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an FCA authorised adviser before:
• converting safeguarded benefits into flexible benefits (or in the case of benefits which are both safeguarded and flexible, into different flexible benefits)
• using a transfer payment in respect of safeguarded benefits to acquire flexible benefits under another scheme
• being paid an “uncrystallised funds pension lump sum” (UFPLS) in respect of their safeguarded benefits.

Refer Mercer to the link above - point out that you wish to transfer a pension with no safeguarded benefits.