If you’re an active member of the Morgan Sindall Retirement Savings Plan, you may be able to transfer the value of other pensions into your retirement savings in the Plan.
If you leave a pension scheme, the pension you’ve built up still belongs to you. You normally have the option to leave it where it is, or you can move it to another pension scheme, such as the Morgan Sindall Retirement Savings Plan, but you don’t have to decide straight away.
Everyone’s circumstances are different, so we can’t cover everything you need to think about on this page. That’s why it’s always a good idea to talk to a regulated financial adviser who will go through the pros and cons with you.
If you want to transfer a previous pension into the Plan, ‘The next steps’ at the end of this page will take you through the process and timing.
Reasons why you may wish to transfer
As people change jobs during their working life, they often build up a number of small pots along the way. If you move your pension savings into one pot, you may find it easier to keep track of your different pensions pots and to see what your total retirement savings amount to.
Every pension scheme will have their own set of investment options and you should compare them with each other. For example, if you’re pleased with how the Plan’s investments are doing here, you may wish to transfer the value of another pension to the Plan.
Range of investment funds
Your retirement savings in the Plan may offer you access to a wider range of funds than those offered by your other pension provider. It’s worth taking time to compare.
Some pensions have large management fees associated with the investments which can eat into the value of your pension. It would be worth taking a look at how the Plan’s investments charges compare with your other pension provider.
Questions to ask before you transfer:
The decision to transfer your pension plan may not be a straightforward one. While there can be advantages, there are some points that you need to consider carefully. Here are some questions you can ask the administrators of your other pensions, along with why the answers are important.
Are there any additional costs or penalties for transferring?
The Trustee of the Morgan Sindall Pension Plan will not charge you for transferring a pension into the Plan. But you should check whether you will be charged an ‘early exit’ charge or transfer fee for transferring your pension from your existing provider.
Are there any special features that you will lose if you transfer?
Your other pension may offer valuable benefits that you’d lose if you transferred out. It’s good to find what these are before transferring. For example, final salary pensions have certain promises that you will lose if you transfer out.
Will I lose the right to take out my money at a certain age? (This is called a ‘protected pension age’.)
If you have a protected pension age through your other pension and may wish to take your benefits earlier than age 55, a transfer may not be right for you as you will lose this protection if you transfer.
Request a transfer value quotation from your previous pension provider and ask questions, like those above, to ensure that you understand the implications of transferring.
Talk to a regulated financial adviser
Pension transfers can be complicated, and it can be difficult to make the right decision on your own. So, even if you don’t have to take financial advice, it may be worth doing so. You can find a financial adviser who specialises in pension transfers, in your local area, by visiting www.unbiased.co.uk. Financial advisers will charge a fee for the advice they give you that they will agree with you up front.
Complete the ‘Transfer-in Authority form’ and send it to the Plan Administrator.
If you have already received a quotation and discharge forms from your previous pension provider, please complete and send these to the Plan Administrator instead. You do not need to complete the ‘Transfer In Authority Form and can instead skip to step 4.
The Plan Administrator will talk to your previous pension provider and will forward you any discharge forms you are required to complete, along with a transfer value quotation, if you have not already received one.
You must complete and return any discharge forms to the Plan Administrator.
The Plan Administrator will send these forms on to your previous provider together with a request for payment.
The previous provider will transfer the money to the Trustee’s bank account.
The Plan Administrator will then invest the money in your Plan account and will write to you confirming the value received and where your transfer has been invested.
This process can take up to 8 weeks to complete, depending on the requirements of your previous provider, who may ask you to complete further forms to transfer your pension.