October 26th, 2012 / Insight posted in

Take control of your pension

HB writes: I work full time and also run a company on a part-time basis. I would like to move funds from my full-time occupational pension scheme and form a one-member scheme. How do I go about it?

Your letter raises a number of issues that need to be addressed before taking action. In general, although it is possible to transfer funds from one scheme to another, unless you have actually left the service of your employer you would have to withdraw completely from your full-time occupational pension scheme. This is an important and crucial decision and may not be in your best interests. You should therefore seek specialist advice. Providing your part-time occupation gives you taxable earnings separate from your full-time work, it is possible to start a personal pension plan based on these earnings. This plan could run concurrently with the occupational scheme of which you are already a member. If appropriate, the personal pension plan could also accept a transfer value from your occupational scheme. We presume that you are considering this course of action so you can take control of the investments. You will therefore need to consider the type of scheme that you are in and the benefits that will accrue and compare this with the personal pension option. The past performance of the scheme will also need to be considered.