Old pension discovered

Sarah088

I (50 y) have a defined benefits pension with current employer. I’ve discovered that for a short time 20 years ago, I paid into a previous employer’s plan. Total contributions £3.7k, Policy value currently £13.5k. Is there any benefit to resurrecting it and trying to pay in again? Or would it be better to transfer in to my civil service pension? It is a group personal pension plan currently with Aviva. Thank you

Marcon

Sarah088 said:

I (50 y) have a defined benefits pension with current employer. I’ve discovered that for a short time 20 years ago, I paid into a previous employer’s plan. Total contributions £3.7k, Policy value currently £13.5k. Is there any benefit to resurrecting it and trying to pay in again? Or would it be better to transfer in to my civil service pension? It is a group personal pension plan currently with Aviva. Thank you

You may have missed the boat in terms of transferring to your Civil Service pension -  you need to do within 12 months of joining. If you're a new starter, then see: https://www.civilservicepensionscheme.org.uk/joining-the-pension-scheme/transfer-an-old-pension-into-your-civil-service-pension/

if it's an old scheme, check the charges and see if you'd fare better by transferring to a more modern plan.

Silvertabby

How long have you been in the Civil Service?  There is a 12 month limit on transfers in.

If less than 12 months, then ask for an estimate of much Civil Service pension a transfer in would buy you, then decide.

If more than 12 months, then I'll let someone with more knowledge than I about private pensions chip in.

LHW99

If the charges are not too bad, there is not necessarily a reason to transfer.

Whether you can add more to it, you would have to check with Aviva - they may suggest it's moved to a more modern version that they have.

Having two pension funds can be useful, eg assuming this is DC, you could use it to retire a bit early, so that you can take the DB at NRA without reduction. Reductions pre NRA should be neutral in that you get a lower amount, but for a longer period of time. Nevertheless, if the DC would bridge (part of) the gap then you get an increased starting point, and a pension that will have some level of annual increase.

Don't forget to factor in SP at 67 / 68, as if that pushes you into 40% tax (and you don't need that much) then taking the DB early and reduced could be the way to go, and use the DC to top up to what you need till SPA.

DRS1

Even if you don't transfer it it is worth checking how it is invested (and what alternatives there are) and whether there are any special rights or protections associated with it - eg GAR, lump sum of more than 25% or right to take it at 55.

ali_bear

Probably if you ask Aviva about paying into it again they will tell you that it is not possible, but easy to transfer it into one of their current offerings (probably a SIPP) and start paying into that. Should be quick and easy to do.