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I worked for a university for 9 months and have a pension I need to do something with. As I was there for under 2 years, I have to either take a refund (which is peanuts) or transfer it to another pension fund.
My current pension provider in new job won't accept a transfer as the pension is "contracted-out". Not entirely sure what that means......
Any ideas what I can do with the pension? Transfer to a personal plan I set up myself?
EDIT Wrong forum sorry, can Mods transfer it?
I've had real problems since the various legislation changes to transfer pensions - always some 'issue', mainly due to the current provider having to prove that they are offering as good (if not better) benefits. My current transfer is same as yours, didn't work there long enough yet it's still a battle - even though I've no choice to transfer it.
FWIW I needed to use an IFA in the end.
Also if you take it out you'll pay tax on it.
Contracted out means you were opted out of the State Earnings Related scheme (or whatever it's called now) so paid less National Insurance. If your new employers scheme isn't contracted out they won't be able to take it. Should be easy to transfer it to a Personal Pension instead and it's what I would do rather than lose the employers contribution.
[i]Should be easy to transfer it to a Personal Pension instead and it's what I would do rather than lose the employers contribution.[/i]
Wouldn't imagine that the employers contribution is able to be transferred - less than 2 years.
Between three months and two years I think the transfer value will include employer contributions. A refund certainly will not.
Then again I have assumed this is a DC scheme rather than DB since they are so rarely open to new joiners these days.
It's a DB scheme, one of the last final salary ones in existence that was open to new starters I think!
Refund value is around 1/4 of transfer value, after tax etc.
Give Standard Life a call and explain the situation. I use them and am happy with the service/performance. They will ask about the transfer value so have that to hand.