Workplace pension transfer

golcheck

Hi everyone,
I hope to get some answers here as so far nobody gave me proper advice on how to handle this...

I'm 40 years old, so I have not retired yet. Now Pensions is my workplace pension via my employer. I pay contributions and my employer pays contributions.

I am not really happy with Now Pensions. They have bad reviews, low ranking and I simply want to transfer it.

I also have a Stakeholder Pension plan with Scottish Widows.

I would like to transfer my workplace pension (via Now Pensions) to my stakeholder pension (via Scottish Widows.

I called Scottish Widows. They told me it's easy and doable. I simply need to fill up a form on my Scottish Widows account and ask my employer to pay my contributions and employer contributions to Scottish Widows.

I called Now Pensions and I was advised to speak to Scottish Widows and to my employer.

I spoke to the payroll company (separate from the employer, they do payroll for the company and manage our workplace pension). They told me that it's doable. They will have to transfer my scheme from Now Pensions to Scottish Widows so the contributions are paid to the desired company and then I do the transfer of my pot. However, I need my employers approval, because they need to create a new scheme for me.

I spoke to my employer - unfortunately they don't know how to do that and they doubt it is possible at all...

Now I'm confused....

First of all; is it possible to transfer a workplace pension to a stakeholder pension? Is it not 2 different types of pensions?

If my employer needs to create a new scheme for me, will my company have to pay for that?

Cheers

Matt

Dazed_and_C0nfused

It probably is "doable" but would any sensible employer want to give their employees the opportunity to choose their own pension provider?

Sounds like it could end up with a lot of extra admin for them.

Also, Nest are the provider, it's the funds you choose to invest within the pension that are usually they key factor.  Or do you mean the fund choice with Nest is the problem?

Rich1976

Most employers won’t pay into a separate scheme other than the one they have set up for their staff due to the extra admin.
some schemes will allow you to do a partial transfer each year which means the Now scheme will still receive both yours and your employers contributions but then you will need to request a partial transfer via Scottish Widows. Not all schemes allow you to do that though with workplace pensions and some will tell you you can’t transfer until you stop being an employee of that employer and all contributions have stopped.

alternatively keep your current employer scheme to receive the maximum contributions from  you and the employer but pay into your Scottish Widows pension separately each month from any spare cash you have available.

dunstonh

I hope to get some answers here as so far nobody gave me proper advice on how to handle this...

Possibly because what you want to do is a regulated activity.  So, anything here is just opinion and discussion.

I am not really happy with Now Pensions. They have bad reviews, low ranking and I simply want to transfer it.

What have the reviews got to do with you?    Are you suffering an issue?

I also have a Stakeholder Pension plan with Scottish Widows.
I would like to transfer my workplace pension (via Now Pensions) to my stakeholder pension (via Scottish Widows.

Strange choice.   Admittedly NOW is a basic pension but a Stakeholder equally so.  And choosing SW, who have really poor service at on the life and pensions side when you reading NOW is because of what other people say they think they are suffering on the service side.....

I called Scottish Widows. They told me it's easy and doable. I simply need to fill up a form on my Scottish Widows account and ask my employer to pay my contributions and employer contributions to Scottish Widows.

It is highly unlikely your employer will agree to pay to SW as 
a) Stakeholder pensions are not auto-enrolment compliant.  So, you would need to opt out
b) the employer would need to make a separate payment and calculation through their payroll team.   That is hassle that all but the smallest employers will put up with.  And even then, you would need to be a key worker.
c) Stakeholder pensions are not set up to receive variable payments and your employer will not be able to change the amounts.

I spoke to the payroll company (separate from the employer, they do payroll for the company and manage our workplace pension). They told me that it's doable. They will have to transfer my scheme from Now Pensions to Scottish Widows so the contributions are paid to the desired company and then I do the transfer of my pot. However, I need my employers approval, because they need to create a new scheme for me.

Did you tell the payroll team that the existing pension is not auto-enrolment compliant and would not accept instructions from the employer?  I suspect not from what they have told you.  it sounds like you have given them the impression that you are attempting to set up a workplace group scheme with SW which isn't going to happen with just 1 person.

First of all; is it possible to transfer a workplace pension to a stakeholder pension? Is it not 2 different types of pensions?

Yes.    I mean you wouldn't as it would just increase your charges and leave you in a worse position.

If my employer needs to create a new scheme for me, will my company have to pay for that?

Scottish Widows won't set up a group scheme that is auto-enrolment compliant for just one person.

Tucosalamanca

golcheck said:

If my employer needs to create a new scheme for me, will my company have to pay for that?

Yes, there are costs involved, extra admin every month for example. 

I don't know enough to accurately comment to the rest of you enquiry.

I'm an employer, I offer one scheme, the staff can take it or leave it.
The scheme was chosen because it generally meets the needs of staff and is simple to understand.
I'll assist with salary sacrifice on an individual basis but that's as far as it goes.

How would an employer manage if all staff wanted to be in different schemes?

@Dazed_and_C0nfused I don't think that NOW Pensions and Nest are the same provider?

Dazed_and_C0nfused

Tucosalamanca said:

golcheck said:

If my employer needs to create a new scheme for me, will my company have to pay for that?

Yes, there are costs involved, extra admin every month for example. 

I don't know enough to accurately comment to the rest of you enquiry.

I'm an employer, I offer one scheme, the staff can take it or leave it.
The scheme was chosen because it generally meets the needs of staff and is simple to understand.
I'll assist with salary sacrifice on an individual basis but that's as far as it goes.

How would an employer manage if all staff wanted to be in different schemes?

@Dazed_and_C0nfused I don't think that NOW Pensions and Nest are the same provider?

True, got my companies mixed up 😕

Marcon

Tucosalamanca said:

golcheck said:

If my employer needs to create a new scheme for me, will my company have to pay for that?

Yes, there are costs involved, extra admin every month for example. 

I don't know enough to accurately comment to the rest of you enquiry.

I'm an employer, I offer one scheme, the staff can take it or leave it.
The scheme was chosen because it generally meets the needs of staff and is simple to understand.
I'll assist with salary sacrifice on an individual basis but that's as far as it goes.

How would an employer manage if all staff wanted to be in different schemes?

Yet that's exactly the daft idea advanced by Jeremy Hunt in his Autumn Statement. Utterly mad and completely clueless.

gm0

When you leave this employer and become deferred (no more contributions).  You can pull it away by full transfer to where ever you choose.  Easy. 

IF (and only IF) the existing employer scheme supports partial transfer while remaining an active member - then you can sweep contributions from time to time (every year or two) - to another scheme of your choosing.  Some do.  Many do not.  Some schemes have a leave and rejoin arrrangement (with a full transfer) and a delay - which costs you contributions so is unattractive (as well as the admin so caused).

Full or partial DC transfer is done by a "pull" from the new scheme.  Electronically by Origo - the new provider needs to know your existing scheme and a selection from roll number, employee id, NINO to make it happen. 
But it can go wrong.  So doing more transactions by partial transfer sweeps = creating more opportunities to interact with the company you don't think much of - vs letting sleeping dogs lie.

Employer is not obliged to do separate schemes for different employees.  A few do.  Most do not.  And find a blanket "no" easier to deal with from a policy standpoint than arguing the point case by case depending on who the provider is.  As others have indicated.  Not all "pensions" in the broader market place are suitable.  An avoidable minefield that most sensible employers do avoid.

From an investments held perspective there are only two questions - are you invested sensibly (for your age and risk appetite) and at what cost.   It is likely that there is an option at current provider that qualifies as "close enough" even if not your ideal % or fund choice.   The difference in cost vs best in market may be there - but it may not be big enough to be worth the partial transfer bother described upthread.

Good luck sorting it