I've been told my existing Aegon plan fund value is moving to Aegon Retirement Choices (ARC)
Updated 02 February 2017
If we’ve told you we’ll automatically transfer your existing plan fund value to your ARC account - we’ve already done some checks to make sure that transferring is right for you. We’ve calculated that the total annual Aegon charges we’ll take from your ARC account will either be the same or lower than your total annual charge on your existing plan. We may review our charges in the future.
Your letter may have highlighted that you have a protected tax-free cash entitlement under the existing scheme. We’ll arrange for this protection to be carried over into the ARC scheme. This entitlement could potentially be lost on a transfer out, however we’re able to retain this by making a block scheme membership transfer of funds to the new scheme. There is no further action required by you to retain this right. Your exact tax-free cash entitlement will depend on a number of variable factors and will be calculated when you come to take your benefits.
Your Group Personal Pension (GPP) gives you the option of taking out waiver of contribution insurance cover. This is an insurance to help with paying pension contributions to your plan if you become seriously ill or disabled and are unable to work for more than six months.
This cover is not available on your new Aegon Retirement Choices (ARC) account.
If you transfer your GPP plan you would lose the option to take out this cover in the future. Therefore if you consider that the option to take out waiver of contribution cover in the future is important to you, you may wish to ask us not to transfer the funds under your GPP to your new ARC account
If you did want waiver of contribution cover in the future, you’d need to restart a pension contribution into your GPP. The cover would only be on any contributions you’re regularly paying into your GPP plan. The cost of waiver is 2.5% of the pension contribution being paid into the GPP plan. You must be under age 58 to apply. Acceptance of an application for waiver may be subject to our underwriters.
Or you can find more details in your existing plan’s policy conditions.
If you do transfer, and want to have the benefit of waiver of contribution insurance cover, you may be able to take out a standalone policy with another provider.
If you’re not sure transferring is right for you, you should speak to a financial adviser. If you don’t have one you can find one in your local area on the unbiased.co.uk website.
If you make any changes to your existing plan before the transfer is complete - this may affect the terms of this transfer offer.
This is dependent on the investment you choose. Investment costs on ARC are different to those on your existing plan. When we come to transfer your plan we’ll reassess it before we automatically transfer your fund value. If you’ll no longer be better off, in terms of price, we’ll write to you to let you know we’ll no longer be automatically transferring your plan without you telling us to.
I have more than one plan with Aegon – why does the letter only
mention one of my plan numbers? Are you transferring all my
If you have another plan with Aegon, not detailed in your letter, we’ll not automatically transfer that fund value into your ARC account.
At the moment we’re only looking to move the fund value that you’ve built up in your existing workplace plan, the one detailed in your letter. If you have other plans with us, and you want to consider transferring, you should speak to a financial adviser to find out what your options are.
If I choose not to transfer at the moment, but want to at a later date,
are there any consequences of transferring after the deadline?
If you change your mind in the future you’ll still be able to transfer your funds. However, by transferring after the response date in your letter, we would have to sell your investment in your old pension and invest again in your new pension.
This could result in your money not being invested in the market (known as out of market) for up to five days. You would miss out on some growth if the markets rise in that period, but would be protected against a loss if they fall in that time.
If we’ve highlighted that you have an entitlement to protected tax-free cash and you choose not to transfer at this time, as part of the block transfer, it may not be possible for you to carry over this protection if you choose to transfer in future.
If we’ve told you we’ll move your existing plan fund value to your ARC account, and you don’t want us to, you’ll need to confirm this before the date in your letter – you can do this by:
- email - email@example.com; or
- phone - 03456 091 679.
You’ll need to quote your existing plan number, which you’ll find in your letter.
If you do this, your existing plan will remain as is.