What should I consider before transferring to another scheme?

Before transferring you should try to ensure that the benefits available from the scheme which you are transferring to are likely to provide benefits at least as high as those which are available from the ZF UK Pension Plan, or provide benefits which would ensure greater flexibility to provide a benefit of greater use for your personal circumstances. A financial advisor will be able to help you with this. If you are considering transferring at the point of your retirement the Trustee has appointed a financial advisor whose costs are met by the Plan (there may be additional costs outside of the scope of that paid by the Trustee but these will be confirmed before any such advice is given). If you are not considering retirement at the current time further information on financial advisors can be found at Unbiased.

The Pensions Regulator is concerned about the current level of Pension Liberation Fraud. Further information on Pension Liberation Fraud can be found on the Pension Regulator’s website.

• If you are thinking of transferring to your new employer's pension scheme

  Before transferring your ZF UK Pension Plan benefits to your new employer’s pension scheme you should look at what both schemes provide. In particular compare:

  • The level of pension, spouse's benefit, children's allowances and ill-health provisions.
  • The record of pension increases.
  • The early retirement options.
  • Whether pension increases are guaranteed and at what level.

  Your financial advisor should be able to help you with these comparisons.

• If you are thinking of transferring to a personal pension or a stakeholder arrangement

  Remember, a personal or stakeholder pension quotation will be expressed in current monetary values when you retire - it will include an estimate of all the investment returns that may be earned in years to come.

  Your deferred pension (which increases each year) is expressed in monetary values of today - it is based on your pay when you leave ZF and does not include the future increases your pension will receive.

  We recommend that you seek independent financial advice before transferring any pension benefits.

  Checks you must make:

  • Compare the level of benefits carefully - this is not simple since your deferred benefits are based on today's values whereas personal pension and stakeholder quotations are estimates based on predicted values in the future.
  • You should check whether the personal pension or stakeholder quotation includes the same range of benefits as the ZF UK Pension Plan and make sure that you understand what you are quoted.
  • If other benefits are not included, ask what the effect would be on your own pension quotation if a spouse's pension, children's allowances and increases after retirement were included.
  • Obtain advice to help you decide whether any additional options offered by the personal pension or stakeholder scheme (such as income drawdown or an enhanced annuity) may be in your best interests.

  Your financial advisor should be able to help you with these comparisons.

• Transfer Action Checklist

  If you want to investigate transferring your ZF UK Pension Plan benefits you should contact the Plan administrator, Barnett Waddingham, who will send you three forms:

  Transfer Out Member Schedule

  • Give a copy of this schedule to your new pension arrangement. It contains the information they need to tell you what benefits they are prepared to offer you in exchange for a ZF UK Pension Plan transfer payment.
  • It also contains details of your deferred benefits in the ZF UK Pension Plan. You need to compare these with what your new pension arrangement is prepared to offer.
  • If you decide not to make a transfer payment, no further action is required.
  • If you decide to take a transfer payment, the receiving scheme declaration and the member consent form must be completed.

  Member Consent Form

  This is a Consent Form that must be completed by you and your financial advisor. This should then be returned to Barnett Waddingham.

  Receiving Scheme Declaration - Warranty to the ZF UK Pension Plan Trustee

  This is a warranty to the ZF UK Pension Plan Trustee from the new pension arrangement and should be given to the administrators of your new arrangement at the same time as the Transfer Out Member Schedule. The administrator of the new pension arrangement must complete this form and return it to Barnett Waddingham.

  When Barnett Waddingham has received the Member Consent Form and the Receiving Scheme Declaration correctly completed, your original birth and marriage certificates and confirmation that the receiving scheme is registered with HM Revenue & Customs, they will arrange for the transfer payment to be made.