Is my salary-sacrifice pension pot my own?
A reader from London has some questions about her salary-sacrifice pension pot.
Andrew Norton, Halifax investments expert, tackles the problem.
Diana from London asks:
Is salary-sacrifice pension pot mine? My employer operates a salary-sacrifice stakeholder pension scheme.
My monthly percentage salary sacrifice is matched by my employer who contributes the full sum into the scheme on my behalf.
What are my rights with respect to pension contributions if I leave within two years of commencing employment?
Are the contributions treated as having been made by me or by the employer? Would I be able to transfer the total value into a new scheme?
Andrew replies:
It is not clear if you are participating in a genuine salary sacrifice.
This situation could simply be where your employer is making payroll deductions on your behalf alongside its own employer contributions.
If this example is a genuine salary sacrifice arrangement then the contributions from sacrificed salary are simply employer contributions.
As this plan is a stakeholder pension you will be able to transfer the value to a new plan or leave the benefit in the scheme with no time limit applying.
You will need to speak to an adviser to help you consider your options.
If you have a question for Andrew, go to the myfinances.co.uk Ask the Investments Expert section
Or for more information on your investment options go to investments at Halifax.
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