Move small DB pension into DC scheme

Clive_Woody

I have a small DB pension from a previous employer, cash equivalent value is around £20,000. I am trying to move it to my current Aegon targetplan employer pension. Aegon just wrote to me stating that I need to send details of the IFA that advised on this transfer and get them to complete a form they provided before the transfer can go ahead.

My understanding is that this is exempt from needing IFA advice as it is below the £30,000 threshold for advce. Am I misunderstanding, or can Aegon insist on this?

Mark_d

What are you trying to gain by transferring this DB pension?  I myself have a small DB pension from 20 years ago but I have always kept this separate, whilst all my DC pensions are combined into one.

Combining DC pensions saves on admin (fund switching etc.) and annuity costs, but you don't have these with DB pensions so why not leave them alone?

Andy_L

Clive_Woody said:

I have a small DB pension from a previous employer, cash equivalent value is around £20,000. I am trying to move it to my current Aegon targetplan employer pension. Aegon just wrote to me stating that I need to send details of the IFA that advised on this transfer and get them to complete a form they provided before the transfer can go ahead.

My understanding is that this is exempt from needing IFA advice as it is below the £30,000 threshold for advce. Am I misunderstanding, or can Aegon insist on this?

Yes and Yes

You don't, legally, need advice on transferring because of the low value. However Aegon can, as a business decision, insist you have advice before they accept it.

Its also possible its just a c0ck-up & they didn't notice it was under the limit

Clive_Woody

Mark_d said:

What are you trying to gain by transferring this DB pension?  I myself have a small DB pension from 20 years ago but I have always kept this separate, whilst all my DC pensions are combined into one.

Combining DC pensions saves on admin (fund switching etc.) and annuity costs, but you don't have these with DB pensions so why not leave them alone?

These are protected right benefits only and I was told by the prevous scheme that the only option available was to transfer to another scheme.

Back in my younger, more pension naive days, when I moved from this employer (DB scheme) I requested that my pension be moved to my new employer (DC scheme), this was almost 20 years ago so I'm a bit hazy on specifics...only in hindsight this might not have been a great decision. For some reason this part (protected rights benefits) could not or was-not transferred. 

This is not a massive part of my retirement plans, but obviously I'd like to have these funds for use rather than lose them.

MallyGirl

your likely only option is to open a stakeholder pension which has to accept the transfer in, then once it is in the stakeholder you can transfer again to Aegon

Marcon

Clive_Woody said:

I have a small DB pension from a previous employer, cash equivalent value is around £20,000. I am trying to move it to my current Aegon targetplan employer pension. Aegon just wrote to me stating that I need to send details of the IFA that advised on this transfer and get them to complete a form they provided before the transfer can go ahead.

My understanding is that this is exempt from needing IFA advice as it is below the £30,000 threshold for advce. Am I misunderstanding, or can Aegon insist on this?

Advice isn't mandatory where the CETV is under £30K, and the ceding (paying) scheme can't insist you receive such advice before they will transfer the funds.

The receiving scheme can set its own rules for transfers in. The only exception is a stakeholder pension, which must accept any transfer from a UK registered pension scheme.

LHW99

Advice isn't mandatory where the CETV is under £30K, and the ceding (paying) scheme can't insist you receive such advice before they will transfer the funds.

Unless there are some sort of guaranteed benefits (don't know if that would / could be the case here)

Marcon

LHW99 said:

Advice isn't mandatory where the CETV is under £30K, and the ceding (paying) scheme can't insist you receive such advice before they will transfer the funds.

Unless there are some sort of guaranteed benefits (don't know if that would / could be the case here)

Still wouldn't apply where the transfer value is under £30K. Advice is only mandatory where there are 'safeguarded' benefits and the transfer is upwards of £30K.

Clive_Woody

Marcon said:

Clive_Woody said:

I have a small DB pension from a previous employer, cash equivalent value is around £20,000. I am trying to move it to my current Aegon targetplan employer pension. Aegon just wrote to me stating that I need to send details of the IFA that advised on this transfer and get them to complete a form they provided before the transfer can go ahead.

My understanding is that this is exempt from needing IFA advice as it is below the £30,000 threshold for advce. Am I misunderstanding, or can Aegon insist on this?

Advice isn't mandatory where the CETV is under £30K, and the ceding (paying) scheme can't insist you receive such advice before they will transfer the funds.

The receiving scheme can set its own rules for transfers in. The only exception is a stakeholder pension, which must accept any transfer from a UK registered pension scheme.

Thanks, the ceding scheme has no issue with the transfer, it is Aegon as the receiving scheme that is asking for confirmation that I received IFA advice for this transfer. It sounds like Aegon could dig in their heels and insist on this which would effectively stop this happening directly.

I also have pensions (DC) with L&G and a Vanguard SIPP, presumably they would also be likely to have similar rules in place do you think?

I potentially need to look into Stakeholder pensions as an intermediary for moving these funds. I would be very open to any suggestions for Stakeholder pension providers who would be straightforward to deal with for opening and transferring into their scheme.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/81019796/#Comment_81019796

I would be very open to any suggestions for Stakeholder pension providers who would be straightforward to deal with for opening and transferring into their scheme.

https://forums.moneysavingexpert.com/discussion/comment/81030382/#Comment_81030382

https://forums.moneysavingexpert.com/discussion/comment/81047058/#Comment_81047058




https://forums.moneysavingexpert.com/discussion/comment/81047280/#Comment_81047280

He got there in the end

https://forums.moneysavingexpert.com/discussion/comment/81062021/#Comment_81062021

my newly opened Stakeholder Pension 

Marcon

Clive_Woody said:

Marcon said:

Clive_Woody said:

I have a small DB pension from a previous employer, cash equivalent value is around £20,000. I am trying to move it to my current Aegon targetplan employer pension. Aegon just wrote to me stating that I need to send details of the IFA that advised on this transfer and get them to complete a form they provided before the transfer can go ahead.

My understanding is that this is exempt from needing IFA advice as it is below the £30,000 threshold for advce. Am I misunderstanding, or can Aegon insist on this?

Advice isn't mandatory where the CETV is under £30K, and the ceding (paying) scheme can't insist you receive such advice before they will transfer the funds.

The receiving scheme can set its own rules for transfers in. The only exception is a stakeholder pension, which must accept any transfer from a UK registered pension scheme.

Thanks, the ceding scheme has no issue with the transfer, it is Aegon as the receiving scheme that is asking for confirmation that I received IFA advice for this transfer. It sounds like Aegon could dig in their heels and insist on this which would effectively stop this happening directly.

I also have pensions (DC) with L&G and a Vanguard SIPP, presumably they would also be likely to have similar rules in place do you think?

I potentially need to look into Stakeholder pensions as an intermediary for moving these funds. I would be very open to any suggestions for Stakeholder pension providers who would be straightforward to deal with for opening and transferring into their scheme.

What I think isn't going to give you the definitive answer! Ask them - they might say yes. Vanguard looks as if it might: https://www.vanguardinvestor.co.uk/need-help/answer/transferring-a-pension

If they don't, then the stakeholder route is your fallback. You can open one for yourself and do the transfer yourself - no adviser input needed at any stage.