Peoples Pension Refusing to Transfer Out

ricster999

I have a work place pension that pays into my PP scheme which I also top up from my salary. I have a little over £10k and want to transfer that to a SIPP at AJ Bell.
PP are refusing to do this unless I tell my employer I want to opt out of the PP scheme. There's obviously no way in a million years I will decline a free benefit from my employer so I'm stuck in this weird limbo where I want to move cash out but can't.

Surely they cannot just point blank refuse to transfer my pension like this?
I should be able to choose how my money is invested and their incredibly unhelpful and rude staff are refusing to help and taking the "computer says no" line.

The reason for the transfer incidentally is because I want to invest in a particular fund that PP do not support.

Pat38493

So what you are effectively requesting is a partial transfer of existing funds whilst new funds will still go into the People's pension from you and your employer.

If you have triggered a full transfer via AJBell, it's not surprising that it is being rejected by PP.

So you need to ask them if they allow "partial transfers".

If the answer is that they don't support partial transfers, there isn't much you can do.

dunstonh

PP are refusing to do this unless I tell my employer I want to opt out of the PP scheme. 

That is correct.

Surely they cannot just point blank refuse to transfer my pension like this?

Yes they can.  They are taking the correct stance.

I should be able to choose how my money is invested and their incredibly unhelpful and rude staff are refusing to help and taking the "computer says no" line.

Your employer chooses the pension scheme for auto-enrolment.  Not you.   You can discuss their choices with them if you disagree with them.

Some providers accept partial transfers.  That doesn't close the account. Whereas a full transfer does.  I don't know if PP accept partial transfers.

Albermarle

Also PP have rebates on their charges dependent of fund size. Above £10K it is 0.2%, which you will lose if you keep transferring money out ( if allowed) . Considering their standard charge is 0.5% and with a rebate of 0.2% ( all in for fund and platform) that is pretty competitive.

ricster999

dunstonh said:

PP are refusing to do this unless I tell my employer I want to opt out of the PP scheme. 

That is correct.

Surely they cannot just point blank refuse to transfer my pension like this?

Yes they can.  They are taking the correct stance.

I should be able to choose how my money is invested and their incredibly unhelpful and rude staff are refusing to help and taking the "computer says no" line.

Your employer chooses the pension scheme for auto-enrolment.  Not you.   You can discuss their choices with them if you disagree with them.

Some providers accept partial transfers.  That doesn't close the account. Whereas a full transfer does.  I don't know if PP accept partial transfers.

They don't accept partial transfers, hence I appear to be stuck in a pension plan I don't want to be.

ricster999

Well the answers seem to be consistent, which I find amazing.
I was a 'mortgage prisoner' a few years ago. I know appear to be a 'Pensions Prisoner'.
What a mess.

Pat38493

ricster999 said:

Well the answers seem to be consistent, which I find amazing.
I was a 'mortgage prisoner' a few years ago. I know appear to be a 'Pensions Prisoner'.
What a mess.

As another poster said, if you are really determined you could investigate whether you could opt out of your employer scheme, transfer the pension out, and then opt in again later.  However you would probably lose x months of employer contributions while taking care of all this.

The other question here would be - how is your current PP pension invested?  What is the AJ Bell fund that you want to put it into?  Do you really believe that you can choose a better investment choice than whoever your employer engaged to do that?  Did an IFA advise you on this?

Universidad

ricster999 said:

Well the answers seem to be consistent, which I find amazing.
I was a 'mortgage prisoner' a few years ago. I know appear to be a 'Pensions Prisoner'.
What a mess.

I think maybe you don't quite get what's happening here.

Your work pension is not a bank account, and it's not a personal pension.

It's your work pension, and your employer chooses the scheme they are going to use.

The money is not stuck there, you can stop paying into that pension and transfer everything in it somewhere else.

What you can't do is a) force your employer to use a different pension scheme, or b) move money around between existing pension schemes willy nilly.

If you want your employer's pension contributions,  they will go into the scheme of your employer's choosing.

I mean, I sympathise. By the time I was finishing up working for a University, I would very much have liked the oppotunity to put their 21% contribution into a plan of my own choice! But that's not generally how it works.

Be glad you don't live in Japan - when I was working over there, your employer chose which company you would bank with, because they only put their payroll into one!

ricster999

Universidad said:

ricster999 said:

Well the anasdfdggshserthbsretswers seem to be consistent, which I find amazing.
I was a 'mortgage prisoner' a few years ago. I know appear to be a 'Pensions Prisoner'.
What a mess.

I think maybe you don't quite get what's happening here.

Your work pension is not a bank account, and it's not a personal pension.

It's your work pension, and your employer chooses the scheme they are going to use.

The money is not stuck there, you can stop paying into that pension and transfer everything in it somewhere else.

What you can't do is a) force your employer to use a different pension scheme, or b) move money around between existing pension schemes willy nilly.

If you want your employer's pension contributions,  they will go into the scheme of your employer's choosing.

I mean, I sympathise. By the time I was finishing up working for a University, I would very much have liked the oppotunity to put their 21% contribution into a plan of my own choice! But that's not generally how it works.

Be glad you don't live in Japan - when I was working over there, your employer chose which company you would bank with, because they only put their payroll into one!

I get what's happening here. My point is I don't like what's happening because the Pension provider limits my choice, and if I force a move it disadvantages me financially.

ricster999

Pat38493 said:

ricster999 said:

Well the answers seem to be consistent, which I find amazing.
I was a 'mortgage prisoner' a few years ago. I know appear to be a 'Pensions Prisoner'.
What a mess.

However you would probably lose x months of employer contributions while taking care of all this.
I would and it would be quite a significant amount

The other question here would be - how is your current PP pension invested?  What is the AJ Bell fund that you want to put it into?  Do you really believe that you can choose a better investment choice than whoever your employer engaged to do that?  Did an IFA advise you on this?
I want to transfer to a SIPP. I've managed it pretty well thus far and want to continue making my own investment decisions. Its not a specific AJ Bell fund btw.

leosayer

I'm with you OP I find it frustrating that I'm stuck in the same way you describe, although for different reasons. Most DC pension schemes have a limited range of self-select funds.

Can I ask what fund you want to invest in that isn't available (at least in equivalent form) on the employer's scheme?

Have you approach your employer's compensation team or the trustees to complain?