Can someone settle a disagreement for me?
An acquaintance was the sole member of a DC Occupational Pension Scheme of a previous employer. He left this employment and moved to an unrelated employer. The new employer was willing to set up a DC Occupational Pension Scheme for him.
Which of the following is correct: -
(1) The new employer must set up a new scheme, into which he can transfer the funds from the old scheme.
(2) With agreement from new and old employers, the old scheme can simply be renamed from Old Employer Ltd to New Employer Ltd and continued, thus avoiding costs of setting up a new scheme.
Thanks.
An acquaintance was the sole member of a DC Occupational Pension Scheme of a previous employer. He left this employment and moved to an unrelated employer. The new employer was willing to set up a DC Occupational Pension Scheme for him.
Which of the following is correct: -
(1) The new employer must set up a new scheme, into which he can transfer the funds from the old scheme.
(2) With agreement from new and old employers, the old scheme can simply be renamed from Old Employer Ltd to New Employer Ltd and continued, thus avoiding costs of setting up a new scheme.
Thanks.