My old company has been taken over: I havent yet transferred my pension.

M

Madra

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I have just found out that a company whom I worked with has been taken over. I haven't transferred my pension to my new employer but now plan on doing so. Its 15 months since I worked there. Will there be any problem passing this over as I've also found out that the HR manages has since left and I'm sure they were one of the trustees/overseers of the fund ?
 
Re: Former employer taken over

The takeover situation should not matter since it is the trustees of the scheme who you (or your broker/financial advisor etc.) will contact to "release" your funds for transfer. If these can't easily be traced then get onto the Pensions Board for advice. One way or another your funds should be safe and ring-fenced from the operations of the former employer and the current owners. Make sure that transferring your pension is beneficial to you (e.g. on charges, transferred in vesting time etc.) and that you can't get a better deal by, for example, transferring the previous occupational fund into a buy out bond or something like that. If in doubt get independent, professional advice.
 
Re: Former employer taken over

Is your current employer making pension deductions from your wages? If so does your payslip record this? Also ask your current employer for pension statement? Was the pension in the old company an "occupational pension scheme"?

I not entirely certain but I think that under TUPE (transfer of Undertakings Protection of Employees) leglisation that the new employer is obliged to continue to honour any any pension arrangements entered into with he old company.

aj
 
Re: Former employer taken over

I didn't think that TUPE or the other issues were relevant here? I assumed that a former employer had been taken over and the question was if this represented any problem for the transfer of an occupational pension that had been in operation with that employer (before the takeover) to the current (unrelated) employer?
 
Clubman is correct. I hadn't thought of the buyout bond scheme, ta. Actually how would I find in advance the charges incurred in transferring ? Would the existing fund owners be able to tell me in advance ? Also would there be a charge from my current employer pension owners ?
 
I may be wrong, but there shouldnt be any charges from your old pension for the transfer.
The charges will arise wherever you transfer them to.
If you transfer the fund to your current pension, you will most likely charges the same charges as you pay on all money going into the pension, which should
be less than 1%.
If you get a buy out bond, you would have to shop around to compare deals.
 
I don't think that there will be any charges for transferring into another occupational scheme but the other charges (e.g. annual management fee, commissions - if any, monthly policy fee, bid-offer spread on contributions, allocation rate on contributions etc.) could differ between the old and new schemes. Ask the trustees of each for detailed information on charges. In addition the selection of funds available under each may differ. I would not assume that the ongoing charges for different occupational schemes are necessarily in the same ballpark. The same applies to a BOB. Shop around for information about BOBs too.
 
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