Question regarding pension consolidation/transfer...

ijholdie

When I left my last employer 12 years ago, I had a defined benefit final salary pension, and I had also contributed to a separate Additional Voluntary Contribution (AVC) scheme. Both of these were deferred when I left the company. My current employer has a defined contributions pension scheme which I have been contributing to. I would like to transfer my old AVC (my old company now refers to it as an Additional Retirement Savings plan ) into my existing DC pension.

Is this possible, and will the transfer/consolidation affect my £60K annual pension allowance or tax relief on payments made into my current company DC pension?

Many thanks in advance 

Ian

NoMore

Transfers do not affect the AA. Otherwise how would anybody with substantial pensions ever be able to transfer. 

Marcon

NoMore said:

Transfers do not affect the AA. Otherwise how would anybody with substantial pensions ever be able to transfer. 

Some transfers can e.g. one made under Public Sector Transfer Club rules where this results in an immediate benefit increase which exceeds the annual allowance.

NoMore

Marcon said:

NoMore said:

Transfers do not affect the AA. Otherwise how would anybody with substantial pensions ever be able to transfer. 

Some transfers can e.g. one made under Public Sector Transfer Club rules where this results in an immediate benefit increase which exceeds the annual allowance.

Bloody pensions there’s always a but!  😂 

Albermarle

ijholdie said:

When I left my last employer 12 years ago, I had a defined benefit final salary pension, and I had also contributed to a separate Additional Voluntary Contribution (AVC) scheme. Both of these were deferred when I left the company. My current employer has a defined contributions pension scheme which I have been contributing to. I would like to transfer my old AVC (my old company now refers to it as an Additional Retirement Savings plan ) into my existing DC pension.

Is this possible, and will the transfer/consolidation affect my £60K annual pension allowance or tax relief on payments made into my current company DC pension?

Many thanks in advance 

Ian

Sometimes the AVC is linked to the DB scheme. For example you can extract extra tax free cash than you could otherwise. Every scheme has different rules.
So the first thing I would do is get hold of a copy of the scheme rules, and/or ask the administrator/trustees if it is actually possible to transfer the AVC out . It should be but best to check first. 

If it is just a simple DC to DC transfer, then that should be easy to organise and would not affect future allowances or tax relief.

ijholdie

Albermarle said:

ijholdie said:

When I left my last employer 12 years ago, I had a defined benefit final salary pension, and I had also contributed to a separate Additional Voluntary Contribution (AVC) scheme. Both of these were deferred when I left the company. My current employer has a defined contributions pension scheme which I have been contributing to. I would like to transfer my old AVC (my old company now refers to it as an Additional Retirement Savings plan ) into my existing DC pension.

Is this possible, and will the transfer/consolidation affect my £60K annual pension allowance or tax relief on payments made into my current company DC pension?

Many thanks in advance 

Ian

Sometimes the AVC is linked to the DB scheme. For example you can extract extra tax free cash than you could otherwise. Every scheme has different rules.
So the first thing I would do is get hold of a copy of the scheme rules, and/or ask the administrator/trustees if it is actually possible to transfer the AVC out . It should be but best to check first. 

If it is just a simple DC to DC transfer, then that should be easy to organise and would not affect future allowances or tax relief.

Many thanks - I will contact the administrator to check

Albermarle

ijholdie said:

Albermarle said:

ijholdie said:

When I left my last employer 12 years ago, I had a defined benefit final salary pension, and I had also contributed to a separate Additional Voluntary Contribution (AVC) scheme. Both of these were deferred when I left the company. My current employer has a defined contributions pension scheme which I have been contributing to. I would like to transfer my old AVC (my old company now refers to it as an Additional Retirement Savings plan ) into my existing DC pension.

Is this possible, and will the transfer/consolidation affect my £60K annual pension allowance or tax relief on payments made into my current company DC pension?

Many thanks in advance 

Ian

Sometimes the AVC is linked to the DB scheme. For example you can extract extra tax free cash than you could otherwise. Every scheme has different rules.
So the first thing I would do is get hold of a copy of the scheme rules, and/or ask the administrator/trustees if it is actually possible to transfer the AVC out . It should be but best to check first. 

If it is just a simple DC to DC transfer, then that should be easy to organise and would not affect future allowances or tax relief.

Many thanks - I will contact the administrator to check

Be aware that some DB pension administrators are notoriously poor at accurately responding to requests, although yours may be fine.
Personally I would rather get a copy of the scheme rules and have a look at myself. You should have been given them at some point.