IL Pension Penalty on transer

[ask73]

I had a pension with IL since 2000 and transferred it into a PRSA with CL to consolidate my pensions. There was no item in the terms & conditions for a penalty for transferring the pension and the fund value was reduced by 15% on transfer even though in the terms it states you can transfer. I have queried this over the phone to IL but they have not responded to me. Their new pension policy documents mention a fee associated with this but was never issued to me ?Any idea what my position is?

 

[LDFerguson]

The penalty may have been Market Value Adjustment, i.e. a penalty applying to the fund you were in, as distinct from your specific policy. What fund were you in?

Put your query in writing to Irish Life - they have to reply.

 

[tenchi-fan]

Hi

There are two reasons for this.

First, as LDFerguson said, it may be the market value adjustment which applies to certain guaranteed funds. It doesn't apply on retirement, only transfers.

Second, on older plans, rather than high upfront charge the charges of the pension are spread over the term of the pension as dictated in the T&Cs (usually to age 70, even though most people retire earlier.) The T&Cs read like something stephen hawking put together. You will be paying these charges gradually to retirement, or all at once if you transfer out early.