When staying put is the best option: Some insurers are warning against leaving occupational pension schemes, reports Nic Cicutti

INSURANCE companies previously happy to accept transfers out of people's occupational pension schemes and into personal ones are now adopting a far more cautious approach.

Typical of the new mood, a result of the recent pension transfer scandal, is Legal & General, which recently published a guide for consumers considering the move.

The free guide, written by Ron Spill, L&G's pensions specialist, warns anyone considering opting out of a firm's scheme while remaining in its employment.

Mr Spill says: 'While there may be exceptions this option is, in our view, almost invariably a financial calamity not worth any serious consideration.'

Also approaching the issue with extra care is Yorkshire Building Society, whose staff are able to give independent financial advice.

Earlier this year Yorkshire launched a service whereby anyone wanting advice on transfers was offered the chance to have his or her pension needs assessed by an independent firm of actuaries, Buck Consultants.

Four Independent readers took up an offer to have their pension requirements assessed by the society's representatives.

As these examples show, several were attracted to the idea of a transfer by the thought of being able to take early retirement.

In each case they found that they were better off where they were rather than transferring or opting out of their existing schemes.

Dr Raphael Gillett, aged 48, is a psychology lecturer at Leicester University. He has been paying into his occupational pension scheme and has no personal pension arrangements.

Yorkshire says: 'Dr Gillett's long-standing involvement in his employers' pension scheme - he has 20 years' service as a university lecturer - meant a transfer was not a realistic option.

'Any plans for early retirement can be approached in the context of his employers' scheme.'

Janette Brown, 39, is a housing manager in the voluntary sector. She has contributed for many years to her occupational pension scheme.

'Ms Brown wanted information on early retirement and on a portable pension. However, as she has been a member of her non-contributory occupational scheme for some time, the transfer option was not required and opting out would have been a mistake.

'She and our adviser have agreed to look at the case again should the option of leaving her employer ever occur.'

Anna Blackburn, 34, from Croydon, south-east London, is an accountant working for Peat Marwick. She is a member of her company's occupational scheme and does not have any personal pension. She has no plans to leave her present employment.

'Miss Blackburn's case was typical of several that have come to our attention. In the course of a brief conversation it became clear she is a member of her employer's pension scheme and rightly intends to remain so.

'Should she need to, she could opt to make additional contributions to her scheme or into a free-standing one, in which case she might need the help of an independent financial adviser. But she does not yet feel she needs to do that at present.'

Peter Hutchinson, 62, is a self-employed course organiser in the voluntary sector living in Sheffield. He is not in a company pension scheme and is already paying into a number of personal schemes, the first of which matures next year.

'Although it became clear that Mr Hutchinson did not have any pension transfer value to assess, the fact-find enabled our adviser to update him on the various pension arrangements he already had.

'A meeting has now been arranged at Mr Hutchinson's request, which will allow the opportunity to look at whether further pension provisions are necessary.'

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