I am thinking of leaving IBM soon, and will probably be moving to a job that only offers a money-purchase pension scheme. I have worked for IBM for 25 years now, and am in my mid 40's. I am on C plan with no AVC's.
I have a few questions which perhaps someone can help me with - maybe they are obvious, but I can't find it written up anywhere and don't want to ask my boss !
1. Should I leave my pension where it is or transfer it ?
2. Assuming I leave my pension with IBM, how will my annual payments be calculated, and when can I start drawing it ?
3. How would I go about trying to size what I could lose in this move, so I can take into consideration in my future budgeting, and in the final negotiations on my package - my future employer in principal will make a one-time contribution towards my pension.
4. What is all this talk about a £1.4M cap on funds - is this something I need to understand and could it impact my decision ?
Thanks in advance