National Grid Pension Transfer Buddy

Pipers wrote: »

Hi all,

This may be a long shot. Does anyone know how I can find a "pension buddy" who's transferring out of the National Grid DB pension scheme. To be a buddy you need to be transferring from National Grid to the same receiving pension scheme. You need a Buddy if you want to preserve your protected pension on transfer - which I do.

Also, has anyone managed to complete a buddy transfer from National Grid?

Any thoughts appreciated

I can't help find you find a buddy, but it might be useful to know which benefit is protected, and why you are trying to transfer and keep the protection, in case an alternative course of action presents itself.

but it might be useful to know which benefit is protected, and why you are trying to transfer and keep the protection,

I believe that some NG pensioners in certain circumstances have a "protected pension age" of 50.

I don't know whether there is protected tax free cash in excess of the norm.

Pipers wrote: »

I have a protected retirement age earlier than 55. I am coming up to 50 and will be able to access my pension. I am really keen to transfer out due to the value I have been offered but do not want to give up my early retirement age. "Buddying Up" seems to be the only option to do this. It is very frustrating as they are HMRC rules yet if I could do this transfer they would benefit from tax I would be liable to pay for exceeding my LTA.

Yep, you're looking at a buddy transfer under those conditions.

Other options might be;
(i) move but lose the protected retirement age,
(ii) take the scheme pension at age 50, and / or look at commuting as much to tax free cash as is possible, depending on the commutation factor.
(iii) see if a partial transfer is an option, allowing you to transfer some of the fund and lose the protected retirement age, and then draw a smaller scheme pension and possibly tax free cash at age 50.

Does the scheme have any penalties for drawing at age 50?

Be aware if you find a buddy, that not all personal pensions will be open to you, as protected retirement age is fairly niche.

As you say, this is one of the restrictions imposed that mean the U.K. taxpayer is likely to be worse off. There was a window a year or so back when the buddy rules were waived, but they are back in place now.

Are there any Facebook groups for ex-employees where you might find a buddy with the same intent?

Thanks xylophone. It felt like much more recently. I must be getting old. 😕