Transferring from BC&E to Vanguard whilst still contributing

[Deleted User]

Hello all

I can never seem to get to the bottom of this.

My employer and I contribute to a defined contribution pension with BC&E (formerly the People's Pension).

I'd like to regularly move this money over to my SIPP with Vanguard. (I won't be drawing the pension for about 20 years) to get lower fees and a bigger choice of funds.

Can I do this?

Thanks

Albermarle

Legally yes, but if you can do it practically depends on BC&E and maybe your employer as well, allowing it without comprising the ability to keep adding to your workplace pension.

Are you sure it is worthwhile doing it ?
PP has pretty competitive charges - 0.5% to 0.2% ( depending on the fund size)
Vanguard is typically 0.37% to 0.4%, although it depends on what you invest in)
Not a significant difference.

dunstonh

My employer and I contribute to a defined contribution pension with BC&E (formerly the People's Pension).

Are you sure its not the other way around?
B&CE is the original.   Either the LSRB - which you wouldn't transfer as it is 100% TFC.   Or the SHP (there were a couple of others like the FSAVC too).      With auto-enrolment, they rebranded to the Peoples Pension and recently rebranded again to the Peoples Partnership.

I'd like to regularly move this money over to my SIPP with Vanguard. (I won't be drawing the pension for about 20 years) to get lower fees and a bigger choice of funds.

Are you comparing fees like for like?  Such as platform, OCF and TC?  
are you factoring time out of market which could wipe out any difference?  For example, if markets move 1% over the period you are out of the market, and the difference in charges is say 0.02% it could take you 50 years to recover that.

Can I do this?

The rules don't forbid it but the the scheme may not allow partial transfers.  You would need to ask them.

[Deleted User]

Thanks both. 
Yes I may have got the rebranding the wrong way round. 
Good point about time out of the market as well. 
BC&E I seem to be paying 0.5% having selected "up to 100% equities" whereas Vanguard I'm 0.23% on the Global All Cap.

FIREDreamer

[Deleted User] said:

Thanks both. 
Yes I may have got the rebranding the wrong way round. 
Good point about time out of the market as well. 
BC&E I seem to be paying 0.5% having selected "up to 100% equities" whereas Vanguard I'm 0.23% on the Global All Cap.

Don’t forget Vanguard’s 0.15% platform fee as well!

dunstonh

BC&E I seem to be paying 0.5% having selected "up to 100% equities" whereas Vanguard I'm 0.23% on the Global All Cap.

if you are paying 0.50% then that suggests your pot is small.    So, are you really worrying about the difference on a small pot?

0.50% is for those with up to £3,000
0.40% is 3k-10k
0.30% is 10k to 25k
0.25% is 25k to 50k
0.20% is 50k+
There is also £4.50 annual charge.

penners324

No, People's Pension don't allow transfers out whilst your still contributing to the scheme. Scheme rules

ewaste

Furthermore if your were a member of the People's Pension before the 4th of November 2021 you'll have a Protected Pension Age (PPA) of 55. This alone has some value vs a Vanguard SIPP that is tied to the National Minimum Pension Age (NMPA) which will be increasing to 57 as of 2028 and likely to increase further. 

As noted by dunstonh the People's Pension/Partnership fees drop due to a rebate applied as your 'pot' increases. I do agree they do have limited fund options at present, this might hopefully change as they intend on moving away from purely being in the auto-enrolment space.

[Deleted User]

Thanks, yes my BC&E pot is currently very small (under 10k) but I plan to be with this employer until I retire so that's 20 years of investing ahead.

Interesting point about the age of 55 being preserved with BC&E.  Thanks

rjmachin

ewaste said:

Furthermore if your were a member of the People's Pension before the 4th of November 2021 you'll have a Protected Pension Age (PPA) of 55. This alone has some value vs a Vanguard SIPP that is tied to the National Minimum Pension Age (NMPA) which will be increasing to 57 as of 2028 and likely to increase further.

Does this apply to only members of a certain age?

I am 42 years old
I have a pension with The Peoples Pension.
I joined the scheme in March 2015
Current value is £48k
I transferred in £24k in May 2022 from another pension (Aegon)

I expect I am not eligible, but thought I'd check

Albermarle

[Deleted User] said:

Thanks, yes my BC&E pot is currently very small (under 10k) but I plan to be with this employer until I retire so that's 20 years of investing ahead.

Interesting point about the age of 55 being preserved with BC&E.  Thanks

If the pot is over £3K you will be paying 0.4%
With Vanguard you will be paying  0.38% ( 0.23 + 0.15 )