AVC Fund Transfer

dumbrill

In addition to my Defined Benefit pension I accumulated an AVC fund of around £32K. I have now retired and wish to transfer the AVC fund to a SIPP that I have with Interactive Investor. 

Willis Towers Watson, the fund administrator, are stating that the transfer will be reviewed for amber or red flags and may be refused.

The AVC sum is a cash sum with no associated benefits so I don't see why it would be a problem. Are any issues likely to arise with this transfer from a pension regulations perspective?

pterri

dumbrill said:

In addition to my Defined Benefit pension I accumulated an AVC fund of around £32K. I have now retired and wish to transfer the AVC fund to a SIPP that I have with Interactive Investor. 

Willis Towers Watson, the fund administrator, are stating that the transfer will be reviewed for amber or red flags and may be refused.

The AVC sum is a cash sum with no associated benefits so I don't see why it would be a problem. Are any issues likely to arise with this transfer from a pension regulations perspective?

Sounds odd, I’ll have similar in a few years. The whole point is that it’s in effect a separate DC and can be used (in part or whole) as a lump sum, transferred to a  sipp or buy an annuity. 

dunstonh

Willis Towers Watson, the fund administrator, are stating that the transfer will be reviewed for amber or red flags and may be refused.

You should assume that any pension where any of the "professional" administrators are involved will be referred under amber and red flags.    In my experience, they are overly aggressive on the interpretations of the risks and do not use much any discretion that they are allowed to use.

However, no transfer can be refused.  It can only be delayed.

The AVC sum is a cash sum with no associated benefits so I don't see why it would be a problem. Are any issues likely to arise with this transfer from a pension regulations perspective?

Yours will trigger at least one amber flag by default.   i.e. its a SIPP.  Assuming it is real SIPP and not a pretend one (some providers refer to themselves as SIPPs when they are not or some consumers call all pensions SIPPs when they are not), then it will trigger the overseas domiciled investments flag.   Other flags may be raised by your answers to the questions they will ask you.   Not only the answers but your ability to answer.