Personal Pension - Exit Charge
Posted: June 29th, 2018, 11:38 pm
Second posting in one day...
I have a fairly small old style personal pension plan. I took it out in 1992 and stopped paying into it a year or two later. Since then it has been transferred from this provider, to that provider, to another provider, to another provider...
Within the plan there are two separate policies. I can't remember why this is but I have a vague feeling that it might be something to do with contracting out of SERPS (?).
Anyway, I've transferred one of these policies into my new SIPP, which was fine. About £20k. The old personal pension provider took a small charge of £15 for closing the policy down, and the rest was sent across to my SIPP. Job done.
The other policy is different though - the transfer value pack shows a calculation of an early surrender charge of about 5% of the transfer value (£780 from £15k ish). I don't have any of the original terms & conditions I signed up to back in 1992, so I've no way of knowing why this charge is being made, or whether or not it's correct.
I've asked the provider to explain the charge to me, but they are yet to reply (after 3 weeks).
Is this sort of exit charge commonplace? Does anyone know why it would have been levied on one policy but not the other? Are there any "tricks" for avoiding it?
Thx.
I have a fairly small old style personal pension plan. I took it out in 1992 and stopped paying into it a year or two later. Since then it has been transferred from this provider, to that provider, to another provider, to another provider...
Within the plan there are two separate policies. I can't remember why this is but I have a vague feeling that it might be something to do with contracting out of SERPS (?).
Anyway, I've transferred one of these policies into my new SIPP, which was fine. About £20k. The old personal pension provider took a small charge of £15 for closing the policy down, and the rest was sent across to my SIPP. Job done.
The other policy is different though - the transfer value pack shows a calculation of an early surrender charge of about 5% of the transfer value (£780 from £15k ish). I don't have any of the original terms & conditions I signed up to back in 1992, so I've no way of knowing why this charge is being made, or whether or not it's correct.
I've asked the provider to explain the charge to me, but they are yet to reply (after 3 weeks).
Is this sort of exit charge commonplace? Does anyone know why it would have been levied on one policy but not the other? Are there any "tricks" for avoiding it?
Thx.