Transfer of personal pension?

isabelissimo

Yes. I still make a monthly contribution, like I have since the beginning of the policy. 

I was advised to make the Employer Lump Sum contributions once a year once the company was turning a small profit as it is tax efficient to do so. 

The first of these was what caused all the stress. It took 78 days to process it and that only happened when I had to finally resort to making a formal complaint to them. 

The channel of communication through their ‘Secure Message’ portal is woeful at best. Normally any enquiry is just met with a generic reply saying they have passed the enquiry to their ‘Specialist Team’. At one point, some weeks in, one of their so called ‘Specialists’ sent me a message informing me that they ‘had no record of receiving my Contribution (20k!). I nearly died ! 

After I lodged the formal complaint and actually managed to speak directly with a human, it was eventually resolved. It was a torturous process though and had me worried for weeks. 

I have since had the misery of having to repeat the process twice more and experienced the same level of poor service. Frankly, I have had enough

Marcon

isabelissimo said:

I have been paying into my personal pension since 1999. It was originally with Legal and General but this was later moved to ReAsssure Now, for reasons I still can’t understand. 

It was a commercial decision by L&G, who wanted to streamline operations (ie focus on other areas of business) by selling a very large chunk of 'mature' policies to Reassure, who specialise in administering such policies.

isabelissimo

Marcon said:

It was a commercial decision by L&G, who wanted to streamline operations (ie focus on other areas of business) by selling a very large chunk of 'mature' policies to Reassure, who specialise in administering such policies.

Thank you for the explanation. Much appreciated. 

At the time I can only recall receiving a letter saying my pension had been sold off to ReAssure and there was no option in the matter. Hobson’s Choice. 

In my recent experience with them, I find it difficult to fathom exactly how they specialise in administering such policies - apart from badly. If they gave me confidence then I wouldn’t find myself facing the dilemma of whether I can trust them to manage my policy into retirement. I wish I didn’t feel this way but, at this stage, I am fearful of the outcome. 

When all you read is that they are the most complained about pension provider then that doesn’t exactly bolster one’s confidence either …

dunstonh

At the time I can only recall receiving a letter saying my pension had been sold off to ReAssure and there was no option in the matter. Hobson’s Choice. 

You had an option.   Let it move to ReAssure or transfer it to someone else.

In my recent experience with them, I find it difficult to fathom exactly how they specialise in administering such policies - apart from badly.

Part of the issue is that they were unwanted policies by L&G.   ReAssure bought the book but it couldnt stay on L&G software beyond a certain point.   

When all you read is that they are the most complained about pension provider then that doesn’t exactly bolster one’s confidence either …

In 2021 for a 6 month period with 321 complaints.

poseidon1

isabelissimo said:

Yes. I still make a monthly contribution, like I have since the beginning of the policy. 

I was advised to make the Employer Lump Sum contributions once a year once the company was turning a small profit as it is tax efficient to do so. 

The first of these was what caused all the stress. It took 78 days to process it and that only happened when I had to finally resort to making a formal complaint to them. 

The channel of communication through their ‘Secure Message’ portal is woeful at best. Normally any enquiry is just met with a generic reply saying they have passed the enquiry to their ‘Specialist Team’. At one point, some weeks in, one of their so called ‘Specialists’ sent me a message informing me that they ‘had no record of receiving my Contribution (20k!). I nearly died ! 

After I lodged the formal complaint and actually managed to speak directly with a human, it was eventually resolved. It was a torturous process though and had me worried for weeks. 

I have since had the misery of having to repeat the process twice more and experienced the same level of poor service. Frankly, I have had enough

I suspect the problem here is that Reassure is a mere insurance/ pensions warehousing business. It does not sell or set up new pension schemes, so unlike pension businesses soliciting for new business they simply will not have the depth of  technical support.

Add in the fact  that this is an old school self employed personal pension that was not really designed for lump sum corporate contributions, the shallow tech support has to laboriously  handle your corporate lump sums  on a manual basis. 

In view of all the stress and  delay this is causing you, as well as poor visibility of your scheme on the website, I would consider the following course of action:

1) Continue your monthly contributions with Reassure, the enhanced allocations coupled with monthly premium waiver appears too valuable to walk away from whilst you are still minded to make monthly payments.

2) Annual Lump sums ? place that business with a separate better equipped and resourced provider able to handle those contibutions efficiently. Perhaps a SiPP if you are happy to make your own investment decisions. Certainly makes no sense to continue placing your lump sums with Reassure in the circumstances.

Once you get to the point when you  are ready to draw benefits, you could then consider transferring the Reassure funds to the alternative provider, assuming the possible 1% exit charge does not put you off.

artyboy

Marcon said:

QrizB said:

According to a comment on a recent thread, the FCA banned exit fees several years ago. Why do you think you'll be charged one?

They were banned for policies started from 2017, but the ban isn't retrospective.

@Marcon, I commented on that other thread that I know at least one other mainstream provider - Charles Stanley Direct - that still charges to transfer out. It's clearly stated in their charges sheet!

Marcon

artyboy said:

Marcon said:

QrizB said:

According to a comment on a recent thread, the FCA banned exit fees several years ago. Why do you think you'll be charged one?

They were banned for policies started from 2017, but the ban isn't retrospective.

@Marcon, I commented on that other thread that I know at least one other mainstream provider - Charles Stanley Direct - that still charges to transfer out. It's clearly stated in their charges sheet!

Yes, I'd spotted your post on the other thread. If you think they are doing something at odds with the requirements, maybe ask them why? I'd be interested to know the answer you get.

dunstonh

Exit charges are still allowed. Typically priced to cover administration only.    However, the type of charge that ties people in past 55+ is now capped at 1%.

Albermarle

poseidon1 said:

isabelissimo said:

Yes. I still make a monthly contribution, like I have since the beginning of the policy. 

I was advised to make the Employer Lump Sum contributions once a year once the company was turning a small profit as it is tax efficient to do so. 

The first of these was what caused all the stress. It took 78 days to process it and that only happened when I had to finally resort to making a formal complaint to them. 

The channel of communication through their ‘Secure Message’ portal is woeful at best. Normally any enquiry is just met with a generic reply saying they have passed the enquiry to their ‘Specialist Team’. At one point, some weeks in, one of their so called ‘Specialists’ sent me a message informing me that they ‘had no record of receiving my Contribution (20k!). I nearly died ! 

After I lodged the formal complaint and actually managed to speak directly with a human, it was eventually resolved. It was a torturous process though and had me worried for weeks. 

I have since had the misery of having to repeat the process twice more and experienced the same level of poor service. Frankly, I have had enough

I suspect the problem here is that Reassure is a mere insurance/ pensions warehousing business. It does not sell or set up new pension schemes, so unlike pension businesses soliciting for new business they simply will not have the depth of  technical support.

Add in the fact  that this is an old school self employed personal pension that was not really designed for lump sum corporate contributions, the shallow tech support has to laboriously  handle your corporate lump sums  on a manual basis. 

In view of all the stress and  delay this is causing you, as well as poor visibility of your scheme on the website, I would consider the following course of action:

1) Continue your monthly contributions with Reassure, the enhanced allocations coupled with monthly premium waiver appears too valuable to walk away from whilst you are still minded to make monthly payments.

2) Annual Lump sums ? place that business with a separate better equipped and resourced provider able to handle those contibutions efficiently. Perhaps a SiPP if you are happy to make your own investment decisions. Certainly makes no sense to continue placing your lump sums with Reassure in the circumstances.

Once you get to the point when you  are ready to draw benefits, you could then consider transferring the Reassure funds to the alternative provider, assuming the possible 1% exit charge does not put you off.

This provider - Fidelity ( maybe others ) offer exit fee refunds up to £500.
Pension Transfer | SIPP Transfer | Transfer Pension to SIPP

The same provider ( and others) offers periodic cashback offers for transferring into them . Around £250 - £500 for a £100K pension usually.

OP - I would be pretty sure you would get a better service by transferring to a modern pension with another provider. 

Marcon

dunstonh said:

Exit charges are still allowed. Typically priced to cover administration only.    However, the type of charge that ties people in past 55+ is now capped at 1%.

@dunstonh – I’m sure you are right, but how does that square with what the FCA says:

 

Prohibition on early exit charges on a member joining or incrementing benefits under a scheme on or after 31 March 2017

 

COBS 19.6A.4R31/03/2017

1. (1) 

A firm must not:

(a) 

impose; or 

1. (b) 

include in the arrangements relating to a personal pension scheme or stakeholder pension scheme any provision for the imposition of:

an early exit charge on a member of the scheme.

1. (2) 

This rule applies in relation to a member who entered into a contract or other arrangement on or after 31 March 2017 providing for:

1. (a) 

a right to benefits resulting from contributions to the scheme; or 

1. (b) 

an increment to benefits resulting from contributions to the scheme, but only in respect of the member’s benefits under that contract or other arrangement.

 

I appreciate the guidance has been updated, but it's not immediately clear to me that there has been a complete change of direction/policy from the FCA:

 

https://www.handbook.fca.org.uk/handbook/glossary/G3511e.html?date=2025-08-01

 

Article I. early exit charge

has the meaning given in section 137FBB(6) of the Act, which is, in summary:

1.     (a) a charge imposed on a member of a personal pension scheme or stakeholder pension scheme:

1.     (i) when that member, having reached normal minimum pension age, takes the action set out in (b); but

2.     (ii) which is only imposed, or only imposed to that extent, if the member takes that action before the member’s expected retirement date; and

2.     (b) the action is the member taking benefits, converting benefits into different benefits or transferring benefits to another pension scheme; and

3.     (c) in this definition:

1.     (i) a reference to “benefits” includes all or any part of the member’s benefits under the scheme; 

2.     (ii) “charge” includes a reduction in the value of the member’s benefits under the scheme;

3.     (iii) “expected retirement date” means the date determined by or in accordance with the scheme as the date on which the member’s benefits under the scheme are expected to be taken; and

4.     (iv) “normal minimum pension age” has the meaning given in section 279(1) of the Finance Act 2004.

[Note: the meaning of “normal minimum pension age” referred to in (c)(iv) above, is, in summary, in relation to dates on and after 6 April 2010, 55 and, in relation to dates before 6 April 2010, 50].

 

 

What have I missed? You (or one of the other IFAs posting on this board) will doubtless be able to tell me in a trice, rather than my flailing around in the FCA handbook!