Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • oneswoof
    • By oneswoof 17th May 17, 3:51 PM
    • 14Posts
    • 0Thanks
    oneswoof
    Transfer of seven pensions
    • #1
    • 17th May 17, 3:51 PM
    Transfer of seven pensions 17th May 17 at 3:51 PM
    Hello! I have seven different [small] pensions, including two Local Govt schemes. Aviva have stated they charge 0.575% per annum to manage these, It would be handy having everything in one place.
    Is this a good idea, are there options?
    Thanks
Page 1
    • woolly_wombat
    • By woolly_wombat 17th May 17, 4:05 PM
    • 477 Posts
    • 279 Thanks
    woolly_wombat
    • #2
    • 17th May 17, 4:05 PM
    • #2
    • 17th May 17, 4:05 PM
    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.
    • ex-pat scot
    • By ex-pat scot 17th May 17, 5:18 PM
    • 203 Posts
    • 223 Thanks
    ex-pat scot
    • #3
    • 17th May 17, 5:18 PM
    • #3
    • 17th May 17, 5:18 PM
    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.
    Originally posted by woolly_wombat

    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.
    Last edited by ex-pat scot; 17-05-2017 at 5:24 PM.
    • Silvertabby
    • By Silvertabby 17th May 17, 5:53 PM
    • 1,398 Posts
    • 1,636 Thanks
    Silvertabby
    • #4
    • 17th May 17, 5:53 PM
    • #4
    • 17th May 17, 5:53 PM
    “ 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.
    Originally posted by woolly_wombat
    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. Posted by ex-pat scot
    Ex-pat scot is right - the transfer factors of a LGPS pension are set by GAD (Government Actuaries Dept) rather than being linked to gilts.

    Do you have a current estimate of your LGPS pensions?
    • woolly_wombat
    • By woolly_wombat 17th May 17, 5:58 PM
    • 477 Posts
    • 279 Thanks
    woolly_wombat
    • #5
    • 17th May 17, 5:58 PM
    • #5
    • 17th May 17, 5:58 PM
    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!
    • Ray Singh-Blue
    • By Ray Singh-Blue 17th May 17, 6:05 PM
    • 322 Posts
    • 419 Thanks
    Ray Singh-Blue
    • #6
    • 17th May 17, 6:05 PM
    • #6
    • 17th May 17, 6:05 PM
    0.575% of seven small pensions is the same as 0.575% of one big pension, no?
    • oneswoof
    • By oneswoof 17th May 17, 6:10 PM
    • 14 Posts
    • 0 Thanks
    oneswoof
    • #7
    • 17th May 17, 6:10 PM
    @ Silvertabby
    • #7
    • 17th May 17, 6:10 PM
    "Do you have a current estimate of your LGPS pensions?"

    They are; lump sum; £270 & £910, with £90 & £320 per annum.
    • hyubh
    • By hyubh 17th May 17, 6:20 PM
    • 1,861 Posts
    • 1,382 Thanks
    hyubh
    • #8
    • 17th May 17, 6:20 PM
    • #8
    • 17th May 17, 6:20 PM
    Ex-pat scot is right - the transfer factors of a LGPS pension are set by GAD (Government Actuaries Dept) rather than being linked to gilts.
    Originally posted by Silvertabby
    Um, surely everyone is agreeing here... i.e., that the original poster shouldn't be expecting the high multiples some other DB pension members have been getting, due to that reason.

    (I don't know if your particular schemes are excluded from transfers, as some public servant schemes are apparently).
    Originally posted by ex-pat scot
    No, you're thinking of the unfunded public sector schemes (NHS/TPS/civil service/etc., i.e. most others aside from the LGPS).
    • hyubh
    • By hyubh 17th May 17, 6:28 PM
    • 1,861 Posts
    • 1,382 Thanks
    hyubh
    • #9
    • 17th May 17, 6:28 PM
    • #9
    • 17th May 17, 6:28 PM
    lump sum; £270 & £910, with £90 & £320 per annum.
    Originally posted by oneswoof
    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)...
    • Silvertabby
    • By Silvertabby 17th May 17, 6:40 PM
    • 1,398 Posts
    • 1,636 Thanks
    Silvertabby
    “ lump sum; £270 & £910, with £90 & £320 per annum.
    Originally posted by oneswoof
    That gives you a very rough trivial commutation value of £9,380. Depending on when you left the LGPS, you MAY be able to take this as a de minimas commutation if you are able to take it now - but if you are some way off 55/60 then CPI increases (and the widower's pension factor) will take this over the £10K 'small pot' limit.

    If you don't meet the de minimas rules, then you would only be able to take your LGPS benefits as one off lump sums if the value of ALL your pensions is less than £30K.

    Have you asked for CETVs for your LGPS pensions?
    Last edited by Silvertabby; 18-05-2017 at 9:46 AM.
    • oneswoof
    • By oneswoof 17th May 17, 6:50 PM
    • 14 Posts
    • 0 Thanks
    oneswoof
    @ Silvertabby
    Thanks for your help.
    I left these two LGPS in 2007 and have not yet asked for the CETVs.
    I am 60 in February 2018. The much larger LGPS I left in 2005 and this pays out in 2018.
    It is the odds and ends of pensions that I am looking at here, should I tidy them up and bring then under one roof?
    • Silvertabby
    • By Silvertabby 17th May 17, 7:39 PM
    • 1,398 Posts
    • 1,636 Thanks
    Silvertabby
    Thanks for your help.
    I left these two LGPS in 2007 and have not yet asked for the CETVs.
    I am 60 in February 2018. The much larger LGPS I left in 2005 and this pays out in 2018.
    It is the odds and ends of pensions that I am looking at here, should I tidy them up and bring then under one roof? Posted by oneswoof
    As you left before 2008, then the <£10K de minimas won't apply. It is unlikely that your NRA will be 60, so if you take your LGPS benefit before then they will be reduced for early payment.

    Your LGPS benefits are 100% guaranteed, so don't transfer them just as a tidying up exercise.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

137Posts Today

1,487Users online

Martin's Twitter