DC Pension transfer issue due to DWP rule

DancingQueenHerself

I am trying to transfer a small workplace DC pension into a much larger one, also a DC workplace pension from my most recent employer. The proposed receiving pension is with Aviva and I have been in it for over 10 years. The administrators of the existing pension are telling me that, because some of the Aviva pension funds are invested outside the UK, I must have a call with MoneyHelper. They say DWP think any overseas investment may be a scam. 4 weeks queue for this call.

Is this true? It looks bonkers.

The driver for the transfer is very poor service from the existing pension proviider- last statement was 3 years ago. Aviva have in no way solicited the transfer.

molerat

It will likely be simpler to arrange that call than fight the provider which will be with a complaint, wait 8 weeks and take it to the FOS which will then take several months.  You could name them and you may get some more helpful tailored advice as there are some IFAs on here who know how these providers work.

Albermarle

Most providers take a more pragmatic view of the rules, and would be happy to transfer a pension to a very large established company like Aviva.
A few stick rigidly to the guidance.......

Marcon

DancingQueenHerself said:

I am trying to transfer a small workplace DC pension into a much larger one, also a DC workplace pension from my most recent employer. The proposed receiving pension is with Aviva and I have been in it for over 10 years. The administrators of the existing pension are telling me that, because some of the Aviva pension funds are invested outside the UK, I must have a call with MoneyHelper. They say DWP think any overseas investment may be a scam. 4 weeks queue for this call.

Is this true? It looks bonkers.

The driver for the transfer is very poor service from the existing pension proviider- last statement was 3 years ago. Aviva have in no way solicited the transfer.

It's true and I'm glad the timeframe is now down to 'only' 4 weeks - it was several months when this requirement was first introduced!

Even DWP admit this requirement is OTT, but as the intention was to help protect people from scammers, FOS aren't going to do anything - this is (technically) a legal requirement, so the scheme is well within its rights.

Just get on and book the call. 

ian16527

I had the same a few years ago - just had to list the funds I invested in - Vanguard and HSBC ones - just a tick box exercise although more admin for you

Tommyjw

Many in the industry ate trying to fix it , but DWP aren't listening. 

https://www.pensionsage.com/pa/Major-issues-continue-to-plague-pension-transfers.php

As mentioned some companies are being more strict the definition of the regulations but what if they aren't, and it comes out they messed up? Suddenly potential on the hook for massive issues, fines etc (unlikely in this scenario, but any risk is a risk)

dunstonh

 The administrators of the existing pension are telling me that, because some of the Aviva pension funds are invested outside the UK, I must have a call with MoneyHelper

Its a very common issue with pension schemes that have little or nothing on their green lists.    
The worst offenders are some of the professional administrators used with large schemes, Legal and General and Aegon.

They say DWP think any overseas investment may be a scam. 4 weeks queue for this call.

That is not what the DWP think.  It is what the scheme think.   The DWP allows discretion to be applied and for providers and funds to be added to green lists.   However, it leaves it to the schemes to apply the discretions.

There have been calls for the DWP to fix it but in reality, it is the schemes themselves that are responsible as the existing rules allow it. 

I have two held up at the moment because of this.  With one of them, Legal & General think Vanguard funds are a scam.

FIREDreamer

dunstonh said:

I have two held up at the moment because of this.  With one of them, Legal & General think Vanguard funds are a scam.

🙄

That is just ridiculous.

LHW99

FIREDreamer said:

dunstonh said:

I have two held up at the moment because of this.  With one of them, Legal & General think Vanguard funds are a scam.

🙄

That is just ridiculous.

Especially as dunstonh is an IFA, so presumably unlikely to be fooled by a scammer!

artyboy

For all of their reams of confusing duplicative forms, their lengthy delays and their lack of transparency, I will at least credit Willis Towers Watson with enough common sense to allow an opt out of the MoneyHelper call when I got this 'yellow flag' (or was it yellow light...) on 2 of my past transfers with them.

Any administrator/trustee that enforces things this rigidly is not fully understanding the absurdity of the situation, engaging in some epic a@se covering, or both...

Tommyjw

dunstonh said:

 The administrators of the existing pension are telling me that, because some of the Aviva pension funds are invested outside the UK, I must have a call with MoneyHelper

Its a very common issue with pension schemes that have little or nothing on their green lists.    
The worst offenders are some of the professional administrators used with large schemes, Legal and General and Aegon.

They say DWP think any overseas investment may be a scam. 4 weeks queue for this call.

That is not what the DWP think.  It is what the scheme think.   The DWP allows discretion to be applied and for providers and funds to be added to green lists.   However, it leaves it to the schemes to apply the discretions.

There have been calls for the DWP to fix it but in reality, it is the schemes themselves that are responsible as the existing rules allow it. 

I have two held up at the moment because of this.  With one of them, Legal & General think Vanguard funds are a scam.

The DWP doesn't allow discretion, the regulations are written very clearly. "There are any overseas investments included in the receiving scheme; " is the exact wording, nothing more, nothing less, there is no discretion.