Section 226 retirement annuity plan

J_Gray

I have a section 226 retirement annuity plan that I was hoping to consolidate my other work place pensions into. My provider has told me that I can only transfer other section 226 plans (Which these are not) into this one. Is that the case with other providers too or just my provider? 

dunstonh

My provider has told me that I can only transfer other section 226 plans (Which these are not) into this one. Is that the case with other providers too or just my provider? 

Almost certainly misinformation.  Section 226s can be transferred to stakeholder pensions, personal pensions and SIPPs with no difficulties (unless there is safeguarded benefits - which there often are on 226s)

I suspect you have been told duff info.

J_Gray

Sorry, they did tell me I could transfer it to another plan but I was wanting to transfer them into my existing 226 plan. They told me I could only transfer in another 226 plan

xylophone

I suspect you have been told duff info.

The OP is not querying transfers out of S226 but rather whether or not transfers in to S226 are permitted by providers of such contracts? He has said that his provider does not permit transfers in of anything other than S226 from another provider.

The OP has not named his provider but Prudential  (in FAQ) say

https://www.pruadviser.co.uk/pdf/W521.pdf

About our Retirement Annuities (Section 226 Increments) Plan 

Can I transfer money in?

You are unable to transfer money from another pension into this plan, you can contribute a lump sum into a plan on a one off occasion or make regular payments into your plan.

Can I transfer money out?

You can transfer your fund to another pension arrangement at any time.

Given the  specialised nature of these old contracts (some with GAR/tax free cash over the now standard 25%), it is unsurprising that transfers in might not be permitted?

dunstonh

Sorry, they did tell me I could transfer it to another plan but I was wanting to transfer them into my existing 226 plan. They told me I could only transfer in another 226 plan

Sorry. I got you the wrong way around.    In which case, they are correct.

Section 226s were closed for new money in 1988.   It is not possible to add to them (apart from existing regular contributions that were in place before April 88 which could be maintained).

On the plus side, most section 226s (without safeguarded benefits) are not good value compared to modern plans.   So, it would be rare for a transfer into a 226 to be a good thing, even if it was possible.

J_Gray

oh okay, thanks very much all!