Pension fund transfers

I have a pension from my former employer that I am trying to transfer to my new employees' scheme. I would like to have only one pension, but my new scheme will not accept the transfer as my old scheme will not sign an indemnity regarding the Guaranteed Minimum Pension (GMP). Where do I stand in this deadlock and is it worth leaving the money in the separate schemes?

Nicholas Poole, Coventry

Under current pension regulations, if the trustees of your new employer's pensions scheme are not willing to accept a transfer value from another scheme there is, I'm afraid, nothing you can do about it. This is their right.

However we strongly recommend that you seek independent financial advice in order to help you decide what your options are moving forward.

This can be a specialised area so make sure the advisor you speak to has experience and knowledge of pension transfers.

The reason you would benefit from independent advice is that transferring your pension scheme from the former employer is not the only option open to you.

In fact, you should take advice on whether you should be transferring or not.

For example, if your previous scheme was a final salary scheme, as a deferred member (i.e. a member of the pensions scheme but not currently employed by them) you may have preserved benefits which may include certain guarantees that may be beneficial for you to have.

You will lose these benefits if you transfer out.

Other options that are available to you include transferring the former scheme into a personal pension or making use of what is known as a 'section 32' buy out contract (which is another type of policy option).

A specialist IFA will be able to advise you on what route to take - if you should transfer at all and if so what transfer would be likely to be most beneficial to you.

Roderic Rennison, financial planning director, John Charcol

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.