Provident Funds and RAs

[CathJ]

No, I'm looking to find out which is best

I have a private RA, but I've been contributing to my company's provident fund as well. Now I'm leaving the company, and I want to transfer my benefits from the provident fund to the RA.

I'm sure I've done this once before, but Momentum (who runs the RA) is now saying that the Pension Fund Act says that I can only transfer from a PF to another PF, or from a RA to another RA. So I can't transfer from the PF to the RA.

This sounds really odd to me, but surely they should know? And if it's true, what are my options? I could take the benefit in cash, but I think that then I'd be double-taxed - once when I take the cash, and again when my RA pays out. I could transfer it to a preservation fund (presumably, unless that's somehow against the rules as well) but there's only just on two years worth of contributions, which makes it a rather small amount to invest. And I'd really like to have all my funds in one place.

Edit: I think when I did it before it might have been from a pension fund to my RA, so I guess the rules there might be different?

 

[LazyLion]

Cath, don't you have a good financial adviser who can give you the best advice?

 

[CathJ]

Cath, don't you have a good financial adviser who can give you the best advice?

My financial advisor is acting like a sulky child, and has advised me to speak to Momentum. This may require me to find another financial advisor...

In the mean time, I thought I'd check on here, since myBB is the source of all knowledge

 

[blunomore]

Cath, my advice would be to transfer it to one of the Allan Gray funds. That is what I did and I have been fairly happy with its performance.

 

[CathJ]

bumpity bump.... does no-one know what the law actually says about this?

I'm sure momentum is wrong, but if they stick to what they're saying I'll have to consider the other options... I'd really prefer to do the transfer to my RA, though.

 

[undesign]

I'm sure you can transfer it to a preservation fund, which you can set-up to invest in the same portfolio/risk profile as your RA?

 

[CathJ]

I'm sure you can transfer it to a preservation fund, which you can set-up to invest in the same portfolio/risk profile as your RA?

I could, but it would be a fairly small investment.

If I can't transfer to the RA, what I'll probably do is take it out as cash and put it into my normal investments. Not ideal, but it's what I'm leaning towards at the moment.

 

[undesign]

Or eat out a storm in Rome