Transfer of seven pensions

woolly_wombat wrote: »

I'm sure one of the LGPS experts will be along shortly, but from what I understand transferring out won't offer the vast sums that former bank employees etc are now getting from their schemes.

It's not "former bank employees" but "former employees of companies that offer(ed) Defined Benefit schemes".
The high CETVs on offer are a direct function of gilt yields and trustee /actuary risk appetite, rather than any wheeze from the dodgy bank geezers to pass backhanders on to ex staff.


Frankly the LGPS beneficiaries are far better off than their banking counterparts in terms of pension provision.


Coming back to the original question: is 0.57% reasonable?


It's not bad, and you can transfer old pots under one roof to them. However you can also transfer the old pots to a new provider, who may well be rather cheaper.

I transferred (consolidated) 7 old pots into a central SIPP. At the time, Alliance Trust offered the cheapest service for my requirements and investments, but pricing structures change regularly. Other SIPPs or personal pensions may be cheaper, particularly if you have a substantial overall balance and can find a flat (rather than %) fee.


For example, my Alliance Trust account works out at 0.08% pa (plus any dealing costs).


There is an entirely separate question to ask around the nature of your LGPS entitlement.
I suspect these are "Defined Benefit" pensions (either Final Salary or Career Average). Unless these are very small, you would have to take specialist pension transfer advice to transfer these out, and would lose the certainty over their future value.
(I don't know if your particular schemes are excluded from transfers, as some public servant schemes are apparently).
it can be A Good Thing to transfer out, but usually only in a narrow set of individual circumstances, and in general will involve the individual taking on significant investment risk.

former bank employees etc

Some of us with DB schemes have not been quoted high CETVs.

From what I have read on this forum bank employees do appear to be amongst those who have been quoted high CETVs.

The high CETVs on offer are a direct function of gilt yields and trustee /actuary risk appetite, rather than any wheeze from the dodgy bank geezers to pass backhanders on to ex staff

Don't know where you got that idea from.

Not from me!

oneswoof wrote: »

lump sum; £270 & £910, with £90 & £320 per annum.

How long ago were the employments concerned? If you're still within 5 years of leaving and may get local government employment again, then possibly you might want to keep those pensions as they are because you could then aggregate the service (and get the old periods against a higher rate of pay).

Otherwise, with such small amounts, you could well say, why not transfer out. If you don't, then presumably you'd just be waiting to 55 to trivially commute (future tax rules permitting)...