New employer - what happens old pension ?

[phantom60]

I started working with my previous employer in Jan 2006. They were bought out by another company last summer. My new employers have given me a form to transfer my pension from my previous employment to my pension with my new employers.

1. Am I obliged to transfer it, and if not then what are my options ?
2. Can I "cash in" my old pension, and if so will I have to pay any penalties ?

Any help/advice is much appreciated.

 

[elcato]

You cant cash it in. You can either transfer to new employer or to a PRB which is a pension bond. You can presumably leave it where it is as long as the pension scheme is still active but I suspect that the new company want to close down your original comp[any pension which is why they are asking you to transfer. The transfer is fairly seamless and it helps to keep all of your pension within your current employer. If in 20 years time you try to contact the previous scheme you may have problems getting trustees names etc.

 

[phantom60]

You cant cash it in. You can either transfer to new employer or to a PRB which is a pension bond. You can presumably leave it where it is as long as the pension scheme is still active but I suspect that the new company want to close down your original comp[any pension which is why they are asking you to transfer. The transfer is fairly seamless and it helps to keep all of your pension within your current employer. If in 20 years time you try to contact the previous scheme you may have problems getting trustees names etc.

Thanks elcato,
I've no idea what a PRB/pension bond is (don't really know anything about pensions!) so I guess I'll just transfer it to new employer.

 

[phantom60]

Another quick one, if you can answer it.
I worked with Bank of Ireland for a few years until 2004 - can I also transfer this pension to my current one ?

Thanks.