Scottish Friendly pension transfer

esellek

Hi
I’m struggling with SF to transfer my pension.  A transfer of funds was requested back in May via my new provider, and as it’s been a while thought I would contact SF to ask if there was an issue.  

I had initially requested the 25% withdrawal (I’d like to help children with house deposit), and was given an illustration for an annuity and that I could only withdraw around £200 tax free.  As I have a couple of pensions that I have amalgamated, I thought I’d do a transfer - they didn’t say I couldn’t!

I finally got a response from SF about the transfer and they have said they are waiting for a reply from their actuarial department - but no further info.  I’ve emailed back (again!) and tried to call them as well but not getting anywhere.  Gradually thinking they are Scottish Unfriendly!

I am not sure if I am missing something with regard to pension transfers as I had looked on the Gov website about them, and beginning to think I am stuck with SF holding my pot of funds.

Currently going loopy with trying to get an answer from them.

dunstonh

I finally got a response from SF about the transfer and they have said they are waiting for a reply from their actuarial department - but no further info.

That makes it a non-standard defined contribution scheme by the sounds of it.  Actuaries are not required with defined contribution schemes unless there is an underlying safeguarded benefit.

I had initially requested the 25% withdrawal (I’d like to help children with house deposit), and was given an illustration for an annuity and that I could only withdraw around £200 tax free. 

The restriction on cash could be that its a section 32 buy out bond with GMP.  That would need a back office calculation.

As I have a couple of pensions that I have amalgamated, I thought I’d do a transfer - they didn’t say I couldn’t!

But did they say you could?     Chances are you can but if there is a safeguarded benefit and the value of the plan is over £30,000 then you will need an adviser to handle it.  That wont be cheap as overriding safeguarded benefits is a high risk transaction for advisers and would be priced accordingly.

I am not sure if I am missing something with regard to pension transfers as I had looked on the Gov website about them, and beginning to think I am stuck with SF holding my pot of funds.

I didn't realise they did pensions.   They don't currently so this must be an old plan.   possibly quite old (maybe pre current legislation?)

You need to ask what in particular is holding it up - they should be able to explain why this is not a conventional personal pension plan.  
You also need to ask if there are any safeguarded benefits.

Marcon

dunstonh said:

I am not sure if I am missing something with regard to pension transfers as I had looked on the Gov website about them, and beginning to think I am stuck with SF holding my pot of funds.

I didn't realise they did pensions.   They don't currently so this must be an old plan.   possibly quite old (maybe pre current legislation?)

From SF's website: 

Do you offer pensions?

No, not yet. Existing customers who have transferred to Scottish Friendly may hold a pension with us but we don't currently offer a pension to new customers.

esellek

Thank you ever so much, I’ll go back to them and see if they can answer the question of what’s holding it up and if it is to do with the type of pension.  It is an old workplace pension (Canada Life from the late 1980s which was transferred to Scottish Friendly 2019ish).  

Once I get an answer from them I’ll give an update.

Marcon

esellek said:

Thank you ever so much, I’ll go back to them and see if they can answer the question of what’s holding it up and if it is to do with the type of pension.  It is an old workplace pension (Canada Life from the late 1980s which was transferred to Scottish Friendly 2019ish).  

Once I get an answer from them I’ll give an update.

Sounds like it might be a S32 buyout, as mentioned by dunstonh above. If so, it's no surprise it's taking its time. These are curious little animals which have various restrictions on how they can behave - not least the requirement to ensure there is enough cash to pay a pension at least equal to your 'Guaranteed Minimum Pension' at GMP age (60 for women/65 for men). That often limits the amount of tax free cash you can take, and indeed may require the provider to 'top up' the fund to pay even the GMP. If that's the case, you probably won't be able to transfer. Hence the involvement of their actuarial team.

frustratedhonestguy

Scottish friendly are not replying to my emails. I’ve asked to cash in my full pension pot that was Canada life originally. I’ve left so many e mails and complaints and zero reply. They received my withdrawal forms signed for on 24 December 2024.  To be constantly ignored has caused so much worry that  ill not  get my pension pot lump sum. What action can I take. 

LHW99

frustratedhonestguy said:

Scottish friendly are not replying to my emails. I’ve asked to cash in my full pension pot that was Canada life originally. I’ve left so many e mails and complaints and zero reply. They received my withdrawal forms signed for on 24 December 2024.  To be constantly ignored has caused so much worry that  ill not  get my pension pot lump sum. What action can I take. 

I think patience is called for. Not all providers are quick in responding, and if this is an S32 (is it?) then as explained above it's not a straightforward transaction. It's barely 4 working weeks since they had our forms (no work Christmas / New Year), so you need to wait at least another month before you worry, and multiple emails etc just stop the team dealing with those who are in front of you, and hence slow down dealing with yours.

If it gets to 3 months, then maybe consider finding the dispute procedure. But if it is S32, you should maybe wait longer than that.

Marcon

frustratedhonestguy said:

Scottish friendly are not replying to my emails. I’ve asked to cash in my full pension pot that was Canada life originally. I’ve left so many e mails and complaints and zero reply. They received my withdrawal forms signed for on 24 December 2024.  To be constantly ignored has caused so much worry that  ill not  get my pension pot lump sum. What action can I take. 

Your form was only received by them on Christmas Eve, but you admit you've already bombarded them with emails and complaints. Why? Maybe leave them in peace to actually get on and action your request. With Christmas and New Year intervening, you're just being wholly unrealistic.

artyboy

Marcon said:

frustratedhonestguy said:

Scottish friendly are not replying to my emails. I’ve asked to cash in my full pension pot that was Canada life originally. I’ve left so many e mails and complaints and zero reply. They received my withdrawal forms signed for on 24 December 2024.  To be constantly ignored has caused so much worry that  ill not  get my pension pot lump sum. What action can I take. 

Your form was only received by them on Christmas Eve, but you admit you've already bombarded them with emails and complaints. Why? Maybe leave them in peace to actually get on and action your request. With Christmas and New Year intervening, you're just being wholly unrealistic.

Well... yes and no.

Those of us 'in the know' do realise that initial pension transactions can take a fairly long time, and in the case of legacy plans, a very long time. That said, it's still poor customer service to not even send a quick holding response along the lines of 'we have received your request and will look at it as soon as possible'. With bonus marks for providing at least an indicative timeframe for a more substantive response.

This is where organisations frequently let themselves down on customer service - lack of transparency/communication that makes the customer feel like they are being ignored. I have very little tolerance for that.