I missed the transfer deadline on my pension...

edited 28 February 2020 at 4:01PM in Pensions, Annuities & Retirement Planning
13 replies 582 views
interceptor56interceptor56 Forumite
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After I started a new job I missed the transfer deadline for moving my contributions from old pension scheme to the one at my new job. Am I better off setting up an ISA for my lump sum or transferring it to my new pension scheme?
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  • penners324penners324 Forumite
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    Transfer your old pension to your new one.
    There's not a time limit on transferring pensions so dont see how you've missed it 
  • MallyGirlMallyGirl Forumite, Board Guide
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    or you could leave it where it is.

    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to [email protected]
    Any views are mine and not the official line of MoneySavingExpert.com.
  • xylophonexylophone Forumite
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    There's not a time limit on transferring pensions 

    There can be. The OP says

    After I started a new job I missed the transfer deadline for moving my contributions from old pension scheme to the one at my new job. 

    The new scheme may not accept applications to transfer in after a certain period has passed - with LGPS this is twelve months, I think.

    But I am puzzled by this

    Am I better off setting up an ISA for my lump sum or transferring it to my new pension scheme?

    What lump sum?

    Or does he mean that he has brought an old pension into payment and this is the PCLS?

  • edited 28 February 2020 at 4:57PM
    BrynsamBrynsam Forumite
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    edited 28 February 2020 at 4:57PM
    Transfer your old pension to your new one.
    There's not a time limit on transferring pensions so dont see how you've missed it 
    There is if the receiving scheme says so - they aren't normally required to accept transfers. There is also the possibility of missing the deadline for accepting a transfer value quote from a previous (DB) scheme, although you can normally 'have another go' by requesting another transfer value, albeit you may have to pay for this if it is within 12 months of the previous one.
  • edited 28 February 2020 at 4:59PM
    DoxDox Forumite
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    edited 28 February 2020 at 4:59PM
    Brynsam said:
    Transfer your old pension to your new one.
    There's not a time limit on transferring pensions so dont see how you've missed it 
    There is also the possibility of missing the deadline for accepting a transfer value quote from a previous (DB) scheme, although you can normally 'have another go' by requesting another transfer value, albeit you may have to pay for this if it is within 12 months of the previous one.
    Assuming you are at least 12 months away from the scheme's normal retirement date. Even s, you may still be provided with a transfer value, but you'd need to check with the scheme.
  • interceptor56interceptor56 Forumite
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    I've recieevd a letter form the pensions company that says the following:
    'Please be advised that as the Short Term Leaver Transfer option has been expired you can only take Refund of your contribution. Please find enclosed refund statement' 
    The letter then requests that I fill out a bank mandate form to enable them to process the refund.
    I took 'refund of contribution' to mean they would be giving me back my contribution in a lump sum, am I mistaken?
    Any help would be appreciated! :smile:  
  • edited 28 February 2020 at 5:42PM
    AlbermarleAlbermarle Forumite
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    edited 28 February 2020 at 5:42PM
    Refunds from DC schemes are not allowed anymore but they used to be . Did this happen very recently or has there been a long time lag?
    Or was the old pension a DB/final salary scheme maybe ?
  • interceptor56interceptor56 Forumite
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    I left my old job/started my new job in Jan 2019. It wasn't a final salary scheme or a DB.
  • AlbermarleAlbermarle Forumite
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    https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/leaving-your-pension-scheme/taking-a-refund
    When I read this carefully it says the rules have changed but if you joined the scheme before October 1st 2015 and left within two years you can ask for your contributions to be refunded . After then the rules changed . So as you left in Jan 2019 this does not apply .
    In any case nowhere does it say that they can force you to take a refund. It's much better not to take a refund as it is taxable and you lose the employer contributions . Normally you leave it where it is or transfer it.
    I am wondering if your ex employer is following the rules properly?
  • xylophonexylophone Forumite
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    https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/leaving-your-pension-scheme/taking-a-refund
    It seems that the OP's  old scheme allowed him  a certain amount of time to transfer his short service pension to  another provider - as he did not do this in the time allowed, his contributions net of tax will be refunded.

    He could explore the possibility of making an extra contribution to his new scheme - otherwise he can do as he wishes with it.

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