Resigning - what happens to pension with 3rd party provider

Mistermeaner

Potentially resigning shortly to take up a position in another company
My existing companies pension is completely DC via Scottish widows - it has reasonable fund choice and pretty low fees that are negotiated by my very large corporate employer 
My new employers scheme is with Aviva and from what I've seen so far isn't as good in terms of fund choice and fees 
I understand I can leave my Scottish widows pension where it is, but will i still enjoy the low fees negotiated by my prior employer or will they move me onto a different basis as if I was just joe public ?
Would it be possible for me to periodically transfer funds from my new aviva pension to the old Scottish widows one if indeed the fees and funds are not as attractive ?
Appreciate "ask your hr" is one answer but I haven't resigned yet and want to understand full facts before doing so
Thanks 

SonOf

I understand I can leave my Scottish widows pension where it is, but will i still enjoy the low fees negotiated by my prior employer or will they move me onto a different basis as if I was just joe public ?
The same.
Would it be possible for me to periodically transfer funds from my new aviva pension to the old Scottish widows one if indeed the fees and funds are not as attractive ?
Without having the benefit of checking, I would have thought the Aviva pension is better.  It may not match fees if the terms have been negotiated lower with one and not the other but SW are not known for their quality funds.  It may be that the new employer has locked down many of the Aviva funds that are possible to hold but that don't be quick to jump on the basis of range when range may not matter.  Its what you want to invest in and the quality of that which matters.   It may be that SW is better but it may not be.

You would need to check with the new employer as to whether your version of the pension allows partial transfers.

Albermarle

I understand I can leave my Scottish widows pension where it is, but will i still enjoy the low fees negotiated by my prior employer or will they move me onto a different basis as if I was just joe public ?
The same.

The only caveat to that is that if you change your pension with SW ( this can sometimes be necessary if you go into drawdown for example ) at that point you will have to renegotiate with Scottish Widows about the charges.

You would need to check with the new employer as to whether your version of the pension allows partial transfers. 

It's possible that your new HR dept might not know the answer and you might be better off reading the policy documents yourself .

AnotherJoe

Mistermeaner said:

I understand I can leave my Scottish widows pension where it is, but will i still enjoy the low fees negotiated by my prior employer or will they move me onto a different basis as if I was just joe public ?

Depends what your employer has negotiated. With me when I left the company I retained all low charges with the pension co as if I was an employee until I went into drawdown and then went to Joe Public rates 

Regards partial transfers, that would depend on the new employers scheme. Mine allowed it but I think that was unusual. I also wouldn't be so quick to think that SW woudl be cheaper not only than your new employer but other pensions such as SIPPs. 

SonOf

Depends what your employer has negotiated. With me when I left the company I retained all low charges with the pension co as if I was an employee until I went into drawdown and then went to Joe Public rates 
Split pricing used to be allowed but it was banned.  (Split is in active member and inactive member)
However, if a contract doesnt allow drawdown and requires a transfer then it is effectively a new plan and no longer the old employer one.

Mistermeaner

Regards charges the platform fee is 0.17%
I have approx £350K in there

I am currently invested as follows:

SW(ex zurich) Aquila Emerging Markets Equity Index  = 0.290% charge (5% of portolio)

SW(ex zurich) UK Equity Index CS1 = 0.078% charge (10% of portfolio)

SW(ex zurich) World ex UK Equity Index CS1  = 0.085% charge (60% of portfolio)

SW(ex zurich)  Property CS1 = 0.601% charge (5% of portfolio)

SW(ex zurich)  Threadneedle American Smaller Companies CS1  = 0.885% charge (5% of portfolio)

SW(ex zurich)  Threadneedle Asia CS1  = 0.590% charge (5% of portfolio)

SW(ex zurich)  Threadneedle European Smaller Companies CS1  = 0.895% charge (5% of portfolio)

SW(ex zurich)  Threadneedle UK Smaller Companies CS1  = 0.895% charge (5% of portfolio)

If I leave I am no longer getting the 'free' company contribution so would consider moving if there is better out there

Thanks

MallyGirl

SonOf said:

Depends what your employer has negotiated. With me when I left the company I retained all low charges with the pension co as if I was an employee until I went into drawdown and then went to Joe Public rates 
Split pricing used to be allowed but it was banned.  (Split is in active member and inactive member)
However, if a contract doesnt allow drawdown and requires a transfer then it is effectively a new plan and no longer the old employer one.

We still pay £20 a month into DH's old SW pension in order to keep it 'active' and avoid any fee hike. It is not a problem to do so but interesting that it is no longer necessary

Albermarle

I also have an active SW ( ex Zurich ) workplace pension . The platform fee is slightly higher than 0.17%, but it is true that they have some very low cost funds available compared to my experience with Aviva and others. For example I hold a 40:60 multi asset fund for < 0.1% OCF
The website is a bit clunky though and they are very slow to answer e mails ( a week to ten days) , so I am reluctant to use them later  for drawdown despite the low fees .