"The best performing pension could produce more than three times more pension income than the worst performing one. The really bad news is that your pension fund is more likely to be amongst the bad than the good" The Observer
Many enquiries to The Pensions Office from final salary scheme early leavers express a desire to break all ties with their previous employer and, therefore, to transfer their pension benefits regardless of the possibility or probability of a reduction in future retirement income.
As understandable as this emotion might be The Pensions Office will not agree to act for the client in his desire to transfer until we have conducted a full analysis and presented the client with a report and recommendation which identifies and quantifies the risks in such a course of action. If the client then insists on a transfer The Pensions Office will then usually effect the transfer: we are not afraid of ‘insistent clients’ as we pride ourselves on exceeding our ethical and regulatory responsibilities.
Some of these insistent clients have greater motivation to want a transfer than pure emotion: they fear that the financial instability of the scheme might jeopardise their future benefits. The Pensions Office investigates the latest declared funding position of the scheme for all enquiries and we then assess the degree to which we feel confident (or otherwise) the employer might be able to bring the scheme to a fully-funded position. Many factors have to be taken into account here, but again, we are not afraid of the task and are immensely qualified and experienced to rise to this task.
In all cases we examine, assess and report upon the Pensions Protection Fund, highlighting the value of that protection and the limits to that protection for each client.