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rachelb

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Two years ago i left a company which has now gone into liquidation. I was part of a DC scheme there but now I am in a company with a DB scheme. when I joined the new co I enquired about transferring my pension but Mercer (advisors to current co) advised against it as the my current co's pension scheme is currently only 80% funded. I left my pension as it was but now as the co has gone into liquidation I would prefer to move the previous pension elsewhere. Does anybody have an opinion what my best options are?

Many thanks!
 
If you want to transfer then the only option would seem to me to be a low charges buy out bond/personal retirement bond? Why do you want to transfer and what are the benefits of doing so that you have identified? The pension scheme should not be affected by the company going into liquidation as far as I know although the issue remains of tracking down the scheme trustees to get forms signed etc (e.g. right now to transfer to a BOB/PRB or in the future at retirement). One way or another the pension scheme money should be totally ring fenced from any company issues.
 
In a situation where an employer is liquidated, it's common for the pension scheme to be wound up also. In which case you may end up with no option but to transfer out into a Personal Retirement Bond.
 
In that case I believe that the scheme trustees will present a default BOB/PRB transfer option but this does not preclude you from shopping around for an alternative, ideally one that suits your specific needs better and maybe offers lower charges.
 
Why don't you enquire about transferring in to your new co scheme now (again)?

The funding of most DB schemes has improved over the last two years due to equity market performance and increases in interest rates.

In any event, most DB schemes will allow transfers in on a DC basis - so I do not think that the funding position of the DB scheme should matter.
 
All,

Many thanks for your help. I will look into all the options you have mentioned above. I'm not sure if the pension scheme has gone into liquidation or not. I am waiting for correspondence on this.
 
The pension scheme being wound up is not the same as it going into liquidation! The company may have gone into liquidation leading to them also winding up the pension scheme. This should just mean that members are notified and, by default, moved into a BOB/PRB of the trustees' choosing.
 
If the scheme is winding up, the OP could transfer the fund into a PRSA rather than a PRB?

This would mean that there would be no commisison charged on the transfer and she would have access to ARF options at retirement?
 
boaber said:
If the scheme is winding up, the OP could transfer the fund into a PRSA rather than a PRB?

This would mean that there would be no commisison charged on the transfer and she would have access to ARF options at retirement?
Click to expand...
[broken link removed]
Can I transfer occupational pension scheme benefits
to a PRSA?

You can only transfer your occupational pension scheme benefits
to a PRSA if you have been a member of the scheme for 15 years
or less, and the scheme is being wound up or you are changing job.
You cannot transfer your occupational pension scheme benefits to
a PRSA if you have been a member of the scheme for more than
15 years. However, the value of Additional Voluntary Contributions
to an occupational pension scheme may be transferred to a PRSA,
and the above restrictions do not apply.
Click to expand...
Also - in some cirumstances (fund value > €10K or €12.7K perhaps?) doesn't the need arise for an actuarial report explaining why the occupational fund to PRSA transfer is in the individual's best interests but since nobody is actually doing these or the cost is prohibitive getting one is not possible in practice.
 
ClubMan;431173 Also - in some cirumstances (fund value > €10K or €12.7K perhaps?) doesn't the need arise for an actuarial report explaining why the occupational fund to [I said:
PRSA [/I]transfer is in the individual's best interests but since nobody is actually doing these or the cost is prohibitive getting one is not possible in practice.
Click to expand...

The Certificate of Comparison is not required if the scheme is formally winding up and the Pensions Board have been notified that the scheme is winding up
 
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