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Hoops to jump through for transfer to SIPP
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Hi. There's no actual stated reason for blocking, they have just sent a second and more intrusive questionnaire that they're asking to be completed. In itself not maybe the end of the world, although some of the questions are none of their business. However the fact that many of the questions have already been answered in the first form suggests they'll just keep adding more and more requirements until we give up.It was an employer's scheme but the pre-transfer report shows it as a normal personal pension. No guaranteed rates, minimum pension or protected lump sums. No rebates lost on transfer. However when we call them we can get all that clarified, and sent to us in writing.It amounts to about 3.5% of the total value of our pensions so not the end of the world if we can't transfer, so long as they have sensible options for drawing it. Taking it as a single lump sum would not suit us, nor do we want to be forced to take an annuity. I'll need to revisit my cash flow and tax calculations to see if it we could take it in two instalments, or would have to be three. It's just a nuisance we could do without, having a separate account to manage.
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I would imagine they are not allowed to block any transfer of a normal DC pension, with no guaranteed rights. They are just covering their behind in case your transfer is being driven behind the scenes by someone scamming you. They are just being a bit overkeen/awkward.
That is what it seems like anyway.0 -
It sounds to me as if it could have been an occupation pension that was transferred by the employer to a Section 32 buyout policy.
More info here:
https://connect.avivab2b.co.uk/adviser/articles/tech-centre/pensions-planning/pre-retirement-accumulation/section-32-arrangements-GMPs-and-transferring/
Extract:
When the Section 32 provider accepted the transfer, they also agreed to provide the guarantees associated with the GMP.
Several decades later some of those GMPs have turned out to be far more generous than expected due to the revaluation rules imposed in previous times of very high inflation.
A table of fixed rate revaluation rates can be found here:
https://www.gov.uk/guidance/how-to-calculate-your-scheme-members-guaranteed-minimum-pension0 -
Dunstonh has already spelled out the probable reason for your difficulties.dunstonh said:They want not just the name, company and FCA ID for our adviser, but they want copies of all material and recommendations provided by any adviser.It is not uncommon for there to be a section to provide adviser details (or even for the adviser to sign). However, I have never seen one request a copy of the recommendation unless it has significant safeguarded benefits (typically DB schemes rather than DC schemes).
Either they have taken a turn towards incompetence or they suspect something is up.0 -
This will be because of the new legislation introduced in Nov 2021 to protect from scams.
Providers have to check for 'amber or red flags' on transfers. In some instances, if there are flags present, they will not transfer a pension until the member has spoken to moneywise and provided proof of the appointment.
An IFA I was working for was asked to provide the suitability report for the work, we didn't send it as we considered it irrelevant and they made the member have an appointment with Moneywise.
https://www.gov.uk/government/consultations/pension-scams-empowering-trustees-and-protecting-members/pension-scams-empowering-trustees-and-protecting-members-consultation#ministerial-foreword
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I ma going through this process with Premier for my ex company DC fund. It was around £40K but less now
I started the process on June 30th. It took them 2 months to get back to me and I have gone through the process as per the OP.
One of their warning flags was they had not heard of the SIPP provider I was intending to transfer into. Vanguard.
It still hasn't completed although it must be going through as they have barred me access to the portal0 -
woolly_wombat said:It sounds to me as if it could have been an occupation pension that was transferred by the employer to a Section 32 buyout policyThanks. Do you know how would find that out? The policy was started in 1989 and it would have been an employer's scheme.
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ian16527 said:I ma going through this process with Premier for my ex company DC fund. It was around £40K but less now
I started the process on June 30th. It took them 2 months to get back to me and I have gone through the process as per the OP.
One of their warning flags was they had not heard of the SIPP provider I was intending to transfer into. Vanguard.
It still hasn't completed although it must be going through as they have barred me access to the portal
I find it hard to believe they haven't heard of Vanguard!
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Thanks. Do you know how would find that out? The policy was started in 1989 and it would have been an employer's scheme.Realistically, you should know about your pension before you transfer it. Just in case there are things that mean its best left where it is. For example, a section 32 buy out bond could have GMP. It could also have GARs or protected tax free cash entitlement.
Have you asked the provider what type of pension it is and if there are any safeguarded benefits? - they are acting as if there is.I find it hard to believe they haven't heard of Vanguard!Vanguard is a big fund house but not as well known as a pension provider and they haven't been doing it that long. So, a clerk at pension administrator would not be expected to know the marketplace. They may know about the names they regularly see, but this may be the first Vanguard one that they have done.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
The first two "check boxes" on the list of warning flags are whether the receiving scheme is "a recognised ‘club’ or group transfer" or whether they are on the ceding scheme's "clean" list of providers that have been pre-rated as presenting no risk of pension scams. A "yes" to either means an automatic "proceed".ian16527 said:
One of their warning flags was they had not heard of the SIPP provider I was intending to transfer into. Vanguard.
The only schemes that qualify on the first count are public sector "Transfer Club" schemes or internal transfers. It is very possible that many pensions schemes don't maintain any kind of "clean list" for the second count. And that Vanguard isn't on it if they do - for the reason dunstonh gave.
That may help explain the "never heard of Vanguard" thing. All a pension administrator needs to know is whether a receiving scheme is on the "clean list" (they may not have one). If the scheme doesn't meet either of the first two boxes then it goes to the full due diligence process.0
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