Today it is less likely that an individual will stay with the same employer throughout his/her career. It is therefore extremely important to be fully aware of the options you have for any company pensions you may hold with each employer.

When obtaining employment with  a company you may be presented with the option of joining your new employer’s pension scheme. There are many different types of company pension schemes and depending on the type of pension scheme and its rules, it may be possible to transfer your previous employers’ pension scheme into the into the new one.

This will help in keeping the pensions in one place however, there may be penalties incurred by transferring your old scheme, which would mean that it may be more beneficial to leave it with the old employer. Many pension schemes are unsure if they can accept a final salary transfer as there are legal issues, which prohibit the new plans accepting all the members’ pension benefits. This can sometimes result in difficulties with the transfer and some schemes will not allow them.

When a scheme does permit a member to transfer an old pension into their scheme sometimes they will request that the transfer is processed within a set period of time. If a scheme does allow transfers into their plan, it is advisable to fully compare the new plan against the old scheme as benefits vary between plans.

If you are unclear about anything it’s best to talk to a pension and/or financial adviser rather than accept an option which may hinder your pension process.