Hi,
I have a deferred pension benefit entitlement from the last company I worked for (i.e. I didnt transfer the pension plan value into the pension plan of my new company) and now the pension trustees have written to me with some options as to what I can do with the persion benefit. It can be
- transfered to my new employer
- transfered to a Personal Retirement Bond (PRB)
- or left as a deferred benefit as it is right now
The trustees are recommending that I transfer the pension value to a PRB rather than keeping it in the existing pension plan and they have arranged that there are no charges for the move and that 100.5% of the transfer value will be put in the PRB.
I like the fund options that are available in the existing plan so Im going to continue to leave as a deferred benefit but Im trying to understand the trustees motivations for recommending that I move to a PRB. Is it just to remove the administrative overhead of managing the pension benefit of former employees or is there more to it than that?
Appreciate any thoughts on this.
Warren
I have a deferred pension benefit entitlement from the last company I worked for (i.e. I didnt transfer the pension plan value into the pension plan of my new company) and now the pension trustees have written to me with some options as to what I can do with the persion benefit. It can be
- transfered to my new employer
- transfered to a Personal Retirement Bond (PRB)
- or left as a deferred benefit as it is right now
The trustees are recommending that I transfer the pension value to a PRB rather than keeping it in the existing pension plan and they have arranged that there are no charges for the move and that 100.5% of the transfer value will be put in the PRB.
I like the fund options that are available in the existing plan so Im going to continue to leave as a deferred benefit but Im trying to understand the trustees motivations for recommending that I move to a PRB. Is it just to remove the administrative overhead of managing the pension benefit of former employees or is there more to it than that?
Appreciate any thoughts on this.
Warren