Has anyone succeeded transferring their BT pension into a SIPP?

ZPal

I left BT many years ago (in the 1990s) but have a small pension with them.  I'd like to get it moved into a SIPP, but BT are making it difficult and want me to jump through numerous hoops before they permit the transfer.  I do understand that they are trying to safeguard me and my pension, but I know what I'm doing.  Unfortunately, I need to consult with an IFA who needs to sign off a BT form to confirm that (a) I understand the risks of transferring out and (b) that it is the right decision for me.... but I can't find an IFA willing to do this.  Has anyone out there successfully managed to get their BT pension out?  If so, could you let me know who you used please? Thanks.

dunstonh

but BT are making it difficult and want me to jump through numerous hoops before they permit the transfer.  

How are they making it difficult?

 Unfortunately, I need to consult with an IFA who needs to sign off a BT form to confirm that (a) I understand the risks of transferring out and (b) that it is the right decision for me.... but I can't find an IFA willing to do this. 

That is not BT making it difficult. It is legislation.     Only around 1 in 10 advisers hold pension transfer permissions.  

What are you reasons for wanting to transfer?   I suspect the IFAs you are speaking too are picking up on something they do not like.

Thrugelmir

If the pension is small. The transfer may not be economical for any of the parties concerned. 

Brie

Given that you left BT in the 1990s my guess is that it's a defined benefit scheme.  And IFAs will charge huge amounts and then advise you not to move it. 

A DB scheme, even a small one, can be a great thing to have in your portfolio and nice to have something different that may allow for a different approach on retirement and potentially earlier access. 

sevenhills

ZPal said:

I do understand that they are trying to safeguard me and my pension, but I know what I'm doing. 

Why do you want to move it to a SIPP?

dunstonh

Given that you left BT in the 1990s my guess is that it's a defined benefit scheme.  And IFAs will charge huge amounts and then advise you not to move it. 

Volumes of cases  recommended to transfer are reported to be similar to historic levels.   It is only really the factory line companies that have gone away or firms too small and not doing enough of them to make it viable.    

xylophone

I left BT many years ago (in the 1990s) but have a small pension with them. 

You have a deferred Defined Benefit pension with "safeguarded benefits".

 The value of the pension benefits is greater than £30,000?

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

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.

Albermarle

Suggest you search the forum ( box at the top of the screen ) for 'DB transfer '
It is a much discussed topic , especially the difficulties and costs involved. 

Marcon

ZPal said:

I left BT many years ago (in the 1990s) but have a small pension with them.  I'd like to get it moved into a SIPP, but BT are making it difficult and want me to jump through numerous hoops before they permit the transfer.  I do understand that they are trying to safeguard me and my pension, but I know what I'm doing.  Unfortunately, I need to consult with an IFA who needs to sign off a BT form to confirm that (a) I understand the risks of transferring out and (b) that it is the right decision for me.... but I can't find an IFA willing to do this.  Has anyone out there successfully managed to get their BT pension out?  If so, could you let me know who you used please? Thanks.

Any deferred pensioner of the BT scheme can transfer out if they get a positive recommendation and decide they wish to do so - and plenty have done just that.

Who they used won't help you. Advice is given on an individual basis and FCA rules require it to be tailored to your circumstances. That's a lengthy process and you quite simply won't find an IFA who is going to sign the form without going through that process. Expect to pay around £5K - but don't expect a recommendation to transfer unless you have compelling reasons to do so. 

NedS

Marcon said:

ZPal said:

I left BT many years ago (in the 1990s) but have a small pension with them.  I'd like to get it moved into a SIPP, but BT are making it difficult and want me to jump through numerous hoops before they permit the transfer.  I do understand that they are trying to safeguard me and my pension, but I know what I'm doing.  Unfortunately, I need to consult with an IFA who needs to sign off a BT form to confirm that (a) I understand the risks of transferring out and (b) that it is the right decision for me.... but I can't find an IFA willing to do this.  Has anyone out there successfully managed to get their BT pension out?  If so, could you let me know who you used please? Thanks.

Any deferred pensioner of the BT scheme can transfer out if they get a positive recommendation and decide they wish to do so - and plenty have done just that.

Who they used won't help you. Advice is given on an individual basis and FCA rules require it to be tailored to your circumstances. That's a lengthy process and you quite simply won't find an IFA who is going to sign the form without going through that process. Expect to pay around £5K - but don't expect a recommendation to transfer unless you have compelling reasons to do so. 

and what seems compelling to you versus what an IFA may consider as compelling may be two very different things.

ZPal

Thanks all.  Yes, I have a DB pension.  Reason for wanting to transfer is because I can make more money myself investing in a SIPP and have grown my other (smaller) pension which was easier to transfer by 30% in the last two years.  But I do realise share trading is a high risk and share prices can go either way... and as I have no significant savings, I expect an adviser will not recommend I transfer my BT pension, despite being able to show that my trading experience/skills are good (so far!).  I guess there's no point in spending ££££s only to be told they don't approve the transfer.  I might try shopping around to see if I can find an adviser who'll charge a smaller sum up to, say, £2,000....