Company pension transfer ?

AliceBanned

Hello

I'm hoping someone can help. I stayed with my last Company for eight months, and have just changed jobs. I am reclaiming my pension payments and was told that if I left before two years I would not get the employer's contributions. Even so it looks like I get more for transferring the sum on to my next pension plan than if I cashed it in now. I assume this is normal and am trying to find out from my new employer if the amount is transferable into their scheme, but not had much luck finding out so far.

Would I be wiser to transfer it, it is only a small amount but if I get a refund I have to pay tax on it and the CEP cost. ??

Any advice would be great!

Thanks

jonathon_hart

Hi.

Normally you will get the employer's contributions if you transfer, but only get your contributions if you take a refund,

CEP = the amount needed to buy you back into the state second pension for the time you were in the pension plan.

Thanks

Jonathon

EdInvestor

If your new company's scheme won't take it, you can open a separate personal pension of your own to receive the money so you don't lose the employers conts.

AliceBanned

Thank you both for your replies; I had no idea I could get the employer's contribution if I transfer, after only being there for 8 months. I will double check this with them though to be sure, but it looks like this is true. I have now found out that my new employer will take this fund, but won't consolidate it with the sum I build up through them.

A friend has suggested I look into Stakeholder pensions, because i don't tend to stay in jobs for several years. I could end up with loads of small pension pots if I keep transferring? The sum is only just under £3,000 from my last employer. In pension terms on its own this is nothing I assume? Unless I add to it myself?

Can anyone point me in the right direction eg do I need to see an IFA in this situation?

Thanks very much,

jonathon_hart

AliceBanned wrote: »

I have now found out that my new employer will take this fund, but won't consolidate it with the sum I build up through them.

Unless you are joining a Final Salary scheme that is an unusual approach.

AliceBanned

jonathon_hart wrote: »

Unless you are joining a Final Salary scheme that is an unusual approach.

Thanks Jonathan - do you mean there is no point in me transferring this pension to them at all? Just to a private scheme so that I can add to it? No I am not joining a Final Salary Scheme.

Thanks

jonathon_hart

No I didn't! where you transfer to should be your best option depending on charges/ investment options available and so on.

I was merely commenting that is an unusual way to administer a transfer as it leads to there being 2 pension pots to administer, thus increasing costs -to either the company or you (depending on who pays for the administration).