Moving from Defined Contribution to Defined Benefits

A

ainec

Guest
I have just started a new job with an employer with a defined benefits scheme. In my last job I had defined contribution, and have 5 years contributions in that fund. My question is, would it be worth my while moving the value of my first pension fund into the new defined benefits scheme or should I just leave it where it is?
 
DCto DB

It may be a bit complicated to move the value into the DB scheme unless you can agree with your new employer what it will buy, i.e. an extra 3 or 4 years service for example.
Otherwise you have 2 options:
* leave as is with previous employer, or
* transfer into a Personal Retirement Bond ( a type of individual pension in your name).

I suggest you enquire whether your new employer would give you any years of credit for the transfer value. Otherwise the PRB may be best.
If in doubt, talk to the pension advisors involved in your new scheme.
 
Talk to the pension advisors involved in your scheme

Hi Conan,

If in doubt, talk to the pension advisors involved in your new scheme
Click to expand...

This is often difficult for a new recruit. Do all companies have have a "pension advisor"? I dont think my company has one. Even if the company has a pension advisor are the availiable to the most junior new recruit.

Are there any independent DB pension advisors out there? (there are plenty of DC advisors).

Ajapale
 
DC to DB

Most companies, particularly those running DB schemes will ahve some advisors (at least a firm of Actuaries). If it is difficult to talk to them directly, one should be able to at least raise the issues with the scheme Trustees.
I think it you look at the scheme booklet (if you can find it having put it away safe), it will normally list who are the advisors and Trustees. Somebody must be running the scheme and making decisions.
 
Re: DC to DB

Thanks conan,

I think my point is that it is difficult for the new recruit to navigate these waters especially in the crucial first few weeks in the job. You dont want to get the name of being an akward so-and-so obsessed with the pension!

Thanks
Ajapale
 
Re: DC to DB

Any employer worth their salt should facilitate inducting new employees and dealing with matters such as availing of the employee benefits package offered as part of the contractual agreement.
 
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