NICe contributions.

[DrFfybes]

I have a DC scheme from when I worked for Zeneca/Astrazeneca,Syngenta.

Apparently it is a 'Hybrid' scheme, although as far as I can see I simply have a selection of funds and a number of units in each. However when I try and change my investment choices, a small amount (about 1% of the total) appears seperately as "NICe Pension Plus Contributions".

I've never seen these anywhere else on the paperwork, and wonder if this is why it is Hybrid. I actually want to transfer because the only options available to me are 'cash', a L&G Annuity through their Mastertrust scheme, an annuity elsewhere, or Transfer Out. As I've no intenstion of taking the money then for control and simplicity I want it all in one place.

I've also begun the transfer paperwork, but I keep being directed towards having a Pensionwise appointment. If I decline this is it likely to interfere with the process?

thanks

Paul

[ursaminortaur]

I have a DC scheme from when I worked for Zeneca/Astrazeneca,Syngenta.

Apparently it is a 'Hybrid' scheme, although as far as I can see I simply have a selection of funds and a number of units in each. However when I try and change my investment choices, a small amount (about 1% of the total) appears seperately as "NICe Pension Plus Contributions".

I've never seen these anywhere else on the paperwork, and wonder if this is why it is Hybrid. I actually want to transfer because the only options available to me are 'cash', a L&G Annuity through their Mastertrust scheme, an annuity elsewhere, or Transfer Out. As I've no intenstion of taking the money then for control and simplicity I want it all in one place.

I've also begun the transfer paperwork, but I keep being directed towards having a Pensionwise appointment. If I decline this is it likely to interfere with the process?

thanks

Paul

A hybrid scheme has some of the characteristics of a DC and a DB scheme. Depending on the size of the pot and whether more than £30,000 of the transfer value is safeguarded you may well be legally obliged to pay for professional advice (rather than just having a Pensionwise meeting) just like it was a DB scheme - see the section on Hybrid Schemes in the second link below -

https://pensionsauthority.ie/lifecycle/private_pensions/hybrid_pension_schemes/

A hybrid pension scheme is one which is neither a full defined benefit (DB) scheme nor a full defined contribution (DC) scheme, but has some of the characteristics of each.

https://assets.publishing.service.gov.uk/media/5a80b577ed915d74e33fbf54/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf


"NICe Pension Plus Contributions" suggests that this money is due to rebated NIC contributions due to salary sacrifice. Below are a couple of links to schemes utilising Pension Plus.

https://www.strath.ac.uk/finance/financialservices/pensions/pensionsplus/pensionsplus/

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://prudentialstaffps.co.uk/assets/uploads/documents/513107_PSPS_DB_FINAL.pdf&ved=2ahUKEwiOw8G0wr-DAxUgQ0EAHVPXD1MQFnoECBMQBg&usg=AOvVaw1sj3P-ksBjJZjtlsAZkVLL

[Howard]

I've also begun the transfer paperwork, but I keep being directed towards having a Pensionwise appointment. If I decline this is it likely to interfere with the process?

thanks

Paul

Like you I was directed towards a Pensionwise appointment when I transferred my SIPP (ironically only from the broker side of the provider to their direct side). It seemed a waste of time to me but I arranged an appointment and ticked the box.

The Pensionwise interview was done over the phone and was fairly brief once the advisor had assessed that I was a reasonably experienced investor who had managed the SIPP successfully for 30 years. He did give me one tip, which came from his script, which was useful. It was to ensure that I checked both this and my other pension to remind myself of the widow's benefit percentage. This was helpful as we were re-writing our wills.

So, if you are happy to spend about an hour in total, an interview just might be worthwhile?

regards

Howard

[DrFfybes]

Thanks both.

I had looked up a hybrid scheme, however I can't work out what is Hybrid about it. I joined after the DB scheme was withdrawn for new members, so all I can assume is SOME members have both benefits, hence the scheme is "Hybrid under Chapter 2 of Part 4 of the Finance Act 2004". I tried finding more about this, but didn't really grasp it.

I can't remember the percentages, but it was a pretty standard "Employee pays x%, Employer y%" scheme, and a choice of funds to invest in. I was there 1998 - 2003.

"NICe Pension Plus Contributions" suggests that this money is due to rebated NIC contributions due to salary sacrifice.

Something just popped into my head here, I had Private Health cover as a benefit in return for a reduction in Salary, I can only think this is where it ccould have come from?

Pensionwise Appt on the 23rd.

Paul

[Seasider]

I suspect the scheme is hybrid because it provides both DB and DC pensions. If you joined after it closed the DB section you probably don't need to worry about the hybrid nature of the scheme. If you joined before then you may have a mix of DB and DC benefits but I would have thought you would know about that from benefit statements.
It would be odd for NIC rebates to provide DB pension for someone who was otherwise a DC member.
When you joined you would have received a member's booklet which ought to tell you about the scheme and how it provides benefits for you - do you still have it?
Or you could ask whoever administers the scheme why it is a hybrid and what benefits the NIC rebate generates

[DrFfybes]

When you joined you would have received a member's booklet which ought to tell you about the scheme and how it provides benefits for you - do you still have it?
Or you could ask whoever administers the scheme why it is a hybrid and what benefits the NIC rebate generates

Thanks - the paperwork and booklet are clear it is a DC scheme.

I did ask the administrator who said "You might have some DB in there, it should be on your Transfer Valuation. As it wasn't, I'm inclined to agree with you there is no issue and Hybrid applies to earlier members

The NI rebates are also in the same DC funds.

Thanks

Paul