Transferring a Zurich pension

A Zurich pension transfer, in or out, starts with which kind of Zurich plan you hold, because the rules, charges and guarantees differ between plans.

Before you ask anyone for a form, find the plan type and the paperwork that came with it. Keep your Zurich statement to hand: an FCA-authorised adviser can read it with you by phone, free, after a short enquiry on this page's form. The general steps sit in how to transfer a pension; here we stay with Zurich.

Which Zurich pension do you have?

Zurich is not one pension. Its own fund switch form lists several families of plan, identified by the last letters of the plan number: Personal Pension Plans "(ending DL)", Personal Retirement Plans "(ending DK or DKA)", Adaptable Pension Plans "(ending PB)" and Executive Pension Plans "(ending BC or BD)". Executive plans are run by trustees: the same form says instructions on Executive Pension and Executive Retirement Plans are signed by the trustees or their authorised signatory, unless the plan has been personally assigned.

That matters because a transfer out of a personal plan is a contract between you and Zurich, while a transfer out of a trustee-run scheme also involves the trustees. If you cannot tell which you have, the plan number on your statement is the quickest clue.

How do transfers out of a Zurich scheme work?

One example of a trust-based rule book is Zurich's SR5si scheme rules, an older document still written around abolished tax terms such as the lifetime allowance. They say a member may ask the trustees to move their pot, and that the move "requires the consent of the Trustees except where the Member has a right to a transfer under Part IV of the Pension Schemes Act 1993". The receiving arrangement must be able to accept a recognised transfer and be willing to take it. The same rules let you withdraw a request at any point before the trustees make, or become bound to make, the payment.

Those rules also allow more than one transfer payment only if the whole personal account ends up moved. Their deadline for transfers after leaving is out of step with the law now: Zurich's guide for trustees says the rule ending the statutory right six months after pensionable service stops has been repealed, and the one-year-before-normal-pension-age limit now applies only to benefits that are not flexible benefits. A personal plan, or a newer scheme, has its own terms, so check yours.

Zurich pension transfer times: the six-month legal limit

Where the law gives you the right to transfer, the scheme must act within set limits. Section 99 of the Pension Schemes Act 1993 allows six months from the date of the application for money purchase benefits, and Zurich's guide for trustees repeats that a scheme must do what is needed within six months of the member's written application. That is the outer limit, not a typical time; the practical wait depends on the receiving scheme, any scam checks, and how quickly forms come back. Delays and amber flags are in how long a pension transfer takes.

For the paperwork Zurich will want on your plan, an adviser can walk through the usual order of steps with you for nothing if you use the enquiry form here.

Exit charges and guarantees to check before you move

Zurich's retirement fund guide says even the cost of switching funds inside a plan "depends on your plan", so the place to look for any charge on leaving is your own plan terms, or Zurich itself. For the wider picture of what moving can cost, see pension transfer fees.

For occupational scheme members who are eligible to use the pension freedoms, regulations in force from 1 October 2017 limit early exit charges. Zurich's guide for trustees gives the broad picture: none for members who joined on or after that date, and for earlier joiners a cap of 1% on whatever is taken, converted or transferred out. Whether anything similar covers a personal plan is a question for Zurich or an adviser.

Guarantees need the same care. GOV.UK lists what a move can cost you: a fee for making it, an earlier right to take the pension, fixed or enhanced protection, or a tax free lump sum larger than a quarter of the pot. Its guide adds that "Your pension providers can tell you whether any of these will apply". Zurich's guide for trustees notes that benefits with a guaranteed annuity rate can count as safeguarded (see below), and transferring a with-profits pension sets out what to look for if your plan holds with-profits units. Read the paperwork for these before assuming anything.

Safeguarded benefits over £30,000: the advice rule

If your Zurich plan includes safeguarded benefits, meaning guaranteed rather than pot-based benefits, moving them into a scheme with flexible benefits needs a check, by the trustees or managers, that appropriate independent advice was given to you. The rule bites when the transfer value is above £30,000: regulation 5 of SI 2015/742 says the check is not required if "the transfer value" of those rights "is £30,000 or less on the valuation date".

The FCA says it and The Pensions Regulator "believe it's in most people's best interests to keep their DB pension" and that "You can't reverse a transfer". Advice is a separate regulated step; see finding a pension transfer specialist and transferring a final salary pension. Your Zurich statement, or Zurich itself, can say whether any of your benefits count as safeguarded.

Transferring into Zurich, and keeping safe

Moving into a Zurich plan means asking both ends. GOV.UK tells you to check that your existing scheme "allows you to transfer some or all of your pension pot" and that the scheme you want to move into "will accept the transfer". If Zurich is not the only candidate, choosing where to transfer weighs the others, and comparing SIPPs covers one alternative.

Scammers target people who want to move pensions. High-pressure sales tactics are one of the warning signs the FCA names, and for cold calls its advice is blunt: "the safest thing to do is hang up". The FCA's pension scams page explains what to do, and pension transfer rules covers the checks a scheme must run.

Common questions about Zurich pension transfers

Where do I find what my Zurich plan would cost to leave?

In your own plan terms and statements, or from Zurich direct. GOV.UK points you to the provider to say whether a transfer fee, or the loss of a right, would apply.

Do I have to move my whole Zurich pot?

Under the SR5si rules above, a transfer can be split into several payments only if the whole personal account goes. That is one trust rule book, not every Zurich plan, so ask before you apply. Taking 25% first and transferring the rest covers a related option.

Can the trustees of a Zurich scheme say no?

Under the SR5si rules, a transfer needs the trustees' consent unless you have a statutory right to it under the Pension Schemes Act 1993.

Guarantees, a large transfer value or an unclear exit charge are the moments to put your own papers in front of someone qualified. Booked through this page's form, the phone call is free; an FCA-authorised adviser reads those Zurich papers through with you.