Pension scheme transfer charges

C

ceotoole

Guest
Hi all,

I've been in a company pension scheme for the last 2 years. Recently I left the company to move to a sister company who's pension scheme is managed by the same pension company.

I've been told that I can be transferred to the new scheme for a 'reduced' fee, they've yet to give me an exact figure for this.

Questions:

1. Is it typical to have a transfer fee between company pension schemes?
2. What would be a typical charge for this?
3. Is a pension scheme available that avoids these charges? I work in an industry where people can change employers regularly and I don't want to be hit by transfer fees every time I join a new company.

Any advice would be much appreciated.
 
ceotoole,
1) usually you will be charged an entry fee. There usually isn't an exit fee.
2)They'd try and tell you that there was.
(Considering you can move from an occupation scheme to PRSA scheme without charges)
3)Your choices are limited as the occupational pension schemes you join are set up.
a)You could pay AVC's in to a PRSA.
Then each time you change employment have the proceeds of your company pension transferred in to your PRSA.
b) Or you could leave the fund with each company as you leave them!
S
 
Thanks Savy,

As far as I can see, both schemes are in the same fund. I could understand a charge to go from say an Irish Life fund to an AIB fund, but a charge to stay in the same fund seems a little cheeky.
 
Do you have the option of leaving your money in the old fund until you retire?
 
Yes, I believe so. I assume that my contributions would then sit there until retirement? Intuitively I feel this could be a bad thing as I might leave a trail of little pensions in my wake as I move from job to job. Perhaps this is a common situation in todays changing job market however?

Thanks for the suggestions..... while most of my fellow employees who made the move seem to be happy to transfer to the new scheme, I thought a little investigation at this stage might be a good idea.
 
Intuitively I feel this could be a bad thing as I might leave a trail of little pensions in my wake as I move from job to job
Click to expand...
This can fatten out your pensions file/paperwork all right. However, there can also be a benefit in NOT having all your eggs in one basket. Anyone who had all their eggs in certain parts of Equitable Life is in trouble now. Anyone who had all their eggs in the Mirror Group fund is in trouble now. A bit of diversification can reduce your exposure to any such disasters.
 
Transfer

If they were trus sister companies the revenue would allow a change of name. Therefore I'd imagine this was an initial unit contract which would mean that the transfer would not equal the notional value (units x price).

Or it is the effect of bid offer spread. The exisitng company should really be offering on a bid to bid basis.

You should be taking out either a PRSA blah blah or take out an (1) Open Plan policy with Hibernian (charges more in line with a bank account) (2) An Indemnity contract will give good transfer values (actual values dependent on commission taken) (3) Accumulation unit contract with low commission (dependendent on adviser) which will enhance transfer values.
Single premiums also an option.
 
You must log in or register to reply here.
Back
Top