Members of the Retirement Savings Plan (RSP) with a deferred balance in the IMI Pension Plan (the Plan) will have received a pack in 2014 containing information about transferring their Plan balance into the RSP.
The pack includes information as to why they may wish to transfer, and also includes a Transfer Form from Standard Life.
To recap, we highlighted some pros and cons below:
Reasons you may wish to transfer your Plan pot into the RSP:
• Lower Management Fees. The larger a pension scheme, the lower the fees that can be negotiated from the investment manager. The RSP is now nearly three times bigger than the Plan and, therefore, members of the RSP have a reduction of 0.68% on their investment charges. The standard fee for most funds is 1% less the 0.68% discount leaving an actual charge to the member of 0.32%;
• Ability to consolidate your IMI pension pots with Standard Life;
• Due to the relatively small number of members left in the Plan, IMI has taken the decision to stop its oversight of the Plan after this latest transfer exercise. Going forward any members still in the Plan would have to monitor their pension pots themselves;
• The RSP has a Trustee board which supports you by also monitoring the performance of the individual funds on your behalf;
• The RSP default fund includes the use of a Diversified Growth Fund which aims to produce absolute returns across the economic cycle; and
• The Trustee has devised a simple mapping of individual Plan funds to the RSP structure to ease the transfer process. By signing the form, your pension pot will be transferred in line with the agreed mapping. Once transferred you can change the investments funds at any time.
Reasons you may wish to keep your Plan pot where it is:
• You prefer to select from the broader range of funds in the Plan, noting there is nobody at IMI reviewing performance on your behalf.