Debunking common transfer myths

We’ve debunked some common myths around the pension transfer process from a Transferring Scheme into a PSG SIPP scheme in support of our new Policy and Guide which has been designed to help our trusted advisers and their respective clients better understand what everyone’s duties are in this process.

Myth 1:

PSG SIPP is a transfer management service

PSG SIPP does not and is not allowed to provide an end to end pension transfer management service.  The process itself does not permit this.

Myth 2:

PSG SIPP are responsible for defining and controlling the transfer process

We can initiate a transfer process, but this process is very much defined and outlined by the transferring scheme

Myth 3:

PSG SIPP is responsible for ensuring the Transferring Scheme approves the transfer

PSGS has no power to hold a Transferring Scheme to account if a Transferring Scheme refuses to pay the transfer.

Myth 4:

PSG SIPP have a duty to chase transfers

It is not the responsibility of PSGS to chase any transfers. This is something we are happy to do to assist. However, excessively chasing Transferring Schemes for updates in order to complete a transfer more quickly is not only counterproductive but pulls us away from our abilities to administer our clients schemes. Even worse, it can raise Red flags of a possible pension scam with the Transferring Scheme that could potentially either delay or jeopordise a transfer from completing.

Myth 5:

PSG SIPP must be able to confirm a deadline for when a transfer will be completed

We have no control over a Transferring Schemes service levels, their internal checks or processes they follow in order to ensure compliance with the industry regulator and how long they will take to complete these. What’s more, the recent pandemic has caused huge delays and backlogs for many companies alongside an increase in scams which has heightened risks around transferring and led to increased security checks. This makes it virtually impossible to set a deadline for completion.

Refer to our Policy and Guide to understand what we are able to do and what everyone’s duties are.

SHARING IS CARING


Myth Buster

I could lose pension savings through scheme fees

Bust that myth…

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