Who is at fault here?

NannaH

I’ve been trying to transfer an £8500 lgps pot into my HL Sipp since December.   I thought it was now sorted after lost paperwork/ delays but today the lgps sent me a letter saying that the transfer was not going ahead due to HL ‘not supplying suitably completed certification as to the proper use of the transfer value’  🙄    It was just one  simple form (they sent me a copy) so I really don’t know what’s gone on. 

What on earth is ‘proper’ use of the transfer value?  It’s going into my Sipp,  how is that not deemed proper use?  

LHW99

Have you talked to HL? The phone lines are usually very helpful.

xylophone

Well it all looks simple enough......

https://www.lgpsmember.org/your-pension/thinking-of-leaving/transferring-your-lgps-pension/

‘not supplying suitably completed certification as to the proper use of the transfer value’ 

The clerk at HL hasn't ticked all the boxes on the form????

How odd!

Thrugelmir

NannaH said:

 due to HL ‘not supplying suitably completed certification as to the proper use of the transfer value’  🙄    It was just one  simple form (they sent me a copy) so I really don’t know what’s gone on. 

Did HL agree to accept the transfer in? 

NannaH

HL knew about the transfer and were waiting for the paperwork (since early Jan),  I checked in late Feb and got Lgps to send it out again.
I’m wondering if it will just be easier to get a lump sum from lgps under the small pot rule but can only find mention of trivial commutation. 

xylophone

Small pot mentioned here

https://www.avonpensionfund.org.uk/taking-small-pension-cash-lump-sum

You may be able to take the whole of your pension as a small pot if:

• you’re aged at least 55*, or you are retiring at an earlier age because of ill-health; and
• the capital value of your pension benefits held within the Local Government Pension Scheme (LGPS) does not exceed £10,000.

Thrugelmir

NannaH said:

HL knew about the transfer and were waiting for the paperwork (since early Jan),  I checked in late Feb and got Lgps to send it out again.

Knowing and agreeing to are different matters. Hence my question. 

xylophone

Knowing and agreeing to are different matters. Hence my question. 

But surely the OP would have had to request HL to arrange the transfer?


https://www.hl.co.uk/pensions/transfer-to-the-sipp

2.  We'll take care of the rest

Once you’ve applied, we’ll contact your current pension provider and start your transfer. We’ll also keep you updated along the way and let you know once your transfer is complete.

Marcon

You're talking about a 'pot' but as this is a DB scheme, what you'll have is a Cash Equivalent Transfer Value. That isn't just a difference in terms of jargon - it's a difference in terms of how long a CETV remains valid, or 'guaranteed' - 3 months from the date of calculation, so you are now outside the guarantee period and will almost certainly need to request a new CETV.

New anti-scam transfer regulations came into force at the end of November 2021, putting a much more onerous burden on the scheme paying the transfer to ensure that it is being paid to a bona fide scheme and various other conditions are met. Annoying? Yes, of course, but the LGPS isn't being picky or difficult; it's following a process designed to protect members, so if a form hasn't been fully and correctly completed, the transfer won't happen until that is remedied.

NannaH

It’s utterly ridiculous for such a tiny amount,   it’s not as if HL are an unknown entity and of course I approached HL first to make sure they would accept a transfer.   It’s Staffordshire lgps I’m dealing with and it’s like pulling teeth to get info out of them,  I asked for a cetv in December and every email is taking weeks for a reply. 

HL are usually very efficient so I’m surprised that they’ve made a mistake.  

 It’s the ‘proper use of funds’ thing that’s thrown me,  almost as if Lgps don’t understand what a Sipp is.  

I’ve asked them about taking it as a small pot instead so we’ll see if that takes another 4 months. 

dunstonh

It’s utterly ridiculous for such a tiny amount,   it’s not as if HL are an unknown entity and of course I approached HL first to make sure they would accept a transfer.

Did you you use the correct terminology?  i.e. that it wasn't a pension pot but a defined benefit scheme?   Your first post said LGPS pot and if you used the same phrase with HL then they may not have picked up on the fact it was defined benefit.

I don't know if HL is accepting DB transfers under the £30k threshold or not.

HL are usually very efficient so I’m surprised that they’ve made a mistake.  

When it comes to transfers, in my experience, they are not that efficient compared to others.  They are often the slowest of the larger platforms.  

 It’s the ‘proper use of funds’ thing that’s thrown me,  almost as if Lgps don’t understand what a Sipp is.  

A clerk working for an administrator may not know what a SIPP is as they don't offer one and they are not a retail provider.   Their role involves dealing with transfers to registered pension schemes. SIPP is unlikely to be mentioned anywhere.