Pension question

[alferret]

I have a company pension that I have been paying into for the last 14 years. The company I work for has signed everyone one up for the new government plan.
I have contacted standard life and have been told that I can move that pot into the new plan, convert it to a personal plan and pay into it, or leave it as is, frozen.

My question is I was under the impression that if you had a company pension you were paying into you wouldn't be signed up for the new one and that this was for new savers. Should I be forced to move into the new plan and should I have been signed up for the new plan in the first place.

As always thanks in advance.

[arcimedes]

You will find that the new pension that the company has signed you up for costs the company less and has less good benefits. Unfortunately companies can change your contract anytime they like by giving the requisite notice. You then accept the contract or leave.

[joglynne]

If you belong to a union ask them if they can refer you to a financial advisor. You may even find that they already have an advise pack as the Pension Change will presumably be effecting quite a few members whether it be just one large employer or several as this switch in pension provisions is happening to a lot of employees.

[alferret]

Unfortunately we have no union, what has irked me is the lack of consultation. All I see is the pension rep, a personal friend of the company owner is going to get another slice of commission. I feel we ( about 60 of us) have been signed onto the new pension without any word from the rep or the company.
My contributions will be increasing and the companies contribution is increasing too which is not a bad thing as long as the fund we're paying in to gives around the same return or more than we currently receive. I think I may need to get some independent advice toot sweet so my money can be put to work in the best place.

[joglynne]

I agree Al, our pensions are too important to be left to chance. The charges of a decent independent financial advisor may not be cheap but they could save you a lot in the future. I certainly would not accept the recommendations of either my employer or his friend without checking that the fund they are proposing is as good as they claim.

We have a friend who found that his internal pension scheme paid out a pension that was a lot less than expected even though he had been assured by his company that they had taken expert advise and had made several predictions over the years. He, and several other ex-employees, are currently in a battle to prove that the employer and the underwriters of the pension scheme did not take sufficient steps to safeguard the employees pensions.

You have the opportunity to make sure you are not placed in the same position.

[Hom3r]

Try your local CAB they should put you in contact with a good financial adviser