Transferring pensions

Hi - my previous employer are dragging their heals on transferring my pension lump sum across to my new employers. I was in the scheme for 8 years. I gave a verbal only agreement to stay 2 years in the company if they sponsored me to undertake a college course. I completed the course but did not see out they 2 years in the workplace and left with a year to go. I paid back about half the fees but around 2.4k was still outstanding. I believe this is why they are dragging their heals on it as my broker has told me that he still hasn't recieved the cheque back from the trustees of the scheme and this has been ongoing for 6 months now. Can they legally do this - stop me transferring the pension based on not paying back college fees(and note I signed nothing to that effect)?

Thanks

They cannot hold your pension to ransom over other disputed payments as far as I know. If you or your broker fail to make any progress then complain to the Pensions Board if necessary.

No, they can't do that.

Thanks for the feedback. That's a relief . I'll be on to my broker again to expedite the process.

Regards,
JB

No prob keep us updated and - good luck!

There is often a provision in DB schemes that a company may refuse to pay pension if a fraud has been committed on the company.
If you owe them money they may consider that as fraud.

Sorry what is a DB? Could non payment of college fees be considered a fraud? Especially with nothing in writing?

JB - A DB pension scheme is a defined benefit pension scheme.

do you know if the scheme is Defined Benefit or Defined Contribution.

In any event I am pretty sure it is a moot point, the whole college issue really should have absolutely nothing to do with your pension - and if they were "sore" over it they probably would have adjusted your pay rather than tried to withold your pension!!

Mine was defined contribution South and as I understand it my pension is a separate legal entity from my employer? So fingers crossed it works out

Absolutely, pension benefits from occupational schemes are held under trust - totally separate from rest of employers funds. Well, thats the way its supposed to be anyway

Yes but the Principal Employer is usually the sponsor of the trust and will execute the Trust Deed - so the Principal Employer is entitled to input certain conditions in the Trust Deed relating to fraudulent behaviour, they would usually cover very extreme circumstances though!

True, but they should still separate the roles of Employer & Trustee, even though it is the same entity acting as both. As you said it would have to be a very extreme case indeed - plus they'd also have to ensure they're not breaking general trust (or other law).

The Trustee pursuant to the provisions of the Arbitration Acts, 1954 to 1998, may refer all disputes and differences arising out of the Scheme to arbitration. Complaints of maladministration and disputes of fact or law in
Group Retirement Plan Declaration of Trust and Rules of the Scheme
relation to the Scheme may be referred to the Pensions Ombudsman in accordance with the provisions of The Pensions Act 1990, as amended, and any regulations made thereunder.

In respect of the Scheme, the Employer and Trustee shall act in accordance with the relevant requirements of the Pensions Act 1990, as amended, and any regulations made thereunder and subsequent amendments thereof, or
other legislative provisions or by general law which may override the terms of this Deed and Rules.

As long as they put in a Clause in the Trust Deed and Rules to cover the situation, they should be fine.

Non-payment of college fees would, I am quite sure, not count as gross misconduct!