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  • FIRST POST
    • stdom66
    • By stdom66 17th Jul 17, 8:26 PM
    • 4Posts
    • 0Thanks
    stdom66
    getting a cash equivalent offer
    • #1
    • 17th Jul 17, 8:26 PM
    getting a cash equivalent offer 17th Jul 17 at 8:26 PM
    Hi--ive just phoned my company pension department and asked for a cash equivalent transfer value but they said they can only do that if i am a deferred pensioner-ie. leave the pension scheme. This seems like a catch 22 since i want to know how much it would be worth before i transfer. I am in a final salary pension which is a very good one but obviously with transfer values sky high at the moment would be contemplating investing it myself so anything left after something happens to my wife and i can go to the children. Does anybody know a way round this?
Page 1
    • xylophone
    • By xylophone 17th Jul 17, 8:48 PM
    • 22,855 Posts
    • 13,208 Thanks
    xylophone
    • #2
    • 17th Jul 17, 8:48 PM
    • #2
    • 17th Jul 17, 8:48 PM
    You are still working for the company but wish to leave the scheme (and thus become a deferred member) but carry on working for the company without benefit of pension?
    • Drp8713
    • By Drp8713 17th Jul 17, 9:03 PM
    • 736 Posts
    • 611 Thanks
    Drp8713
    • #3
    • 17th Jul 17, 9:03 PM
    • #3
    • 17th Jul 17, 9:03 PM
    You have no right to a transfer value until you leave the scheme, as youre still accruing benefits each day, therefore by tomorrow it will be wrong.

    It would be a waste of their time. To be able to transfer you will likely need two things: to opt out and an IFA.

    Finding an IFA who will tell you to opt out of a final salary scheme is going to be impossible.

    In my opinion there are only three reasons people transfer out of DB schemes.

    1. Greed.
    2. Stupidity.
    3. Bad Planning.
    • AlanP
    • By AlanP 17th Jul 17, 9:45 PM
    • 886 Posts
    • 604 Thanks
    AlanP
    • #4
    • 17th Jul 17, 9:45 PM
    • #4
    • 17th Jul 17, 9:45 PM

    In my opinion there are only three reasons people transfer out of DB schemes.

    1. Greed.
    2. Stupidity.
    3. Bad Planning.
    Originally posted by Drp8713
    They are 3 possible reasons I grant you but not sure they are the only ones.
    • hyubh
    • By hyubh 17th Jul 17, 10:29 PM
    • 1,884 Posts
    • 1,399 Thanks
    hyubh
    • #5
    • 17th Jul 17, 10:29 PM
    • #5
    • 17th Jul 17, 10:29 PM
    I am in a final salary pension which is a very good one but obviously with transfer values sky high at the moment would be contemplating investing it myself
    Originally posted by stdom66
    'Obviously'...?

    so anything left after something happens to my wife and i can go to the children. Does anybody know a way round this?
    Before you go headlong into the opting out option, what are the current terms? In particular, is it a public or private sector scheme? Is the scheme final salary or CARE? Is there a cap on pensionable pay (i.e. the amount of pay that is counted towards pension benefits) or not? Are ill health terms different for an active vs. a deferred members, and if so, in what way...?
    • sandsy
    • By sandsy 17th Jul 17, 11:03 PM
    • 1,171 Posts
    • 677 Thanks
    sandsy
    • #6
    • 17th Jul 17, 11:03 PM
    • #6
    • 17th Jul 17, 11:03 PM
    So have you investigated what your wife and children would get from the existing scheme if you popped off this mortal coil right now? Do you have death in service benefits which are also provided as a result of being a DB scheme member or are they independent of the scheme?
    • stdom66
    • By stdom66 19th Jul 17, 7:58 PM
    • 4 Posts
    • 0 Thanks
    stdom66
    • #7
    • 19th Jul 17, 7:58 PM
    what would dependants get
    • #7
    • 19th Jul 17, 7:58 PM
    yes i am in death benefit scheme but looking to retire in 8 months. After retirement my wife would get half my yearly pension on my death, but if anything then happened to my wife thats all the money gone. Thats the benefit of opting out as children would then benefit
    • stdom66
    • By stdom66 19th Jul 17, 8:05 PM
    • 4 Posts
    • 0 Thanks
    stdom66
    • #8
    • 19th Jul 17, 8:05 PM
    greed stupidity and bad planning
    • #8
    • 19th Jul 17, 8:05 PM
    I can assure you that i would not be jumping in with two feet until all possible avenues have been thoroughly researched. There are pros and cons on both sides. Greed doesn't come into it as the main reason for opting out would be so my dependants would be left a decent cash some in the event of my death. Also stupidity is pretty harsh unless you have 1st hand experience.
    • stdom66
    • By stdom66 19th Jul 17, 8:14 PM
    • 4 Posts
    • 0 Thanks
    stdom66
    • #9
    • 19th Jul 17, 8:14 PM
    obviously
    • #9
    • 19th Jul 17, 8:14 PM
    Yes obviously-read the financial journals. Its a final salary pension. Once you retire ill health doesnt come into it. You still get the same pension.The benefits of staying in are that i get a decent lump some and a decent yearly pension and if anything happens to me my wife would get half the yearly pension but then if anything happened to her the money would then be stopped. If i opted out the 75% that would be invested would go to my children. Its a bit of a gamble depending on how you invest it. Both options have pros and cons.
    • greenglide
    • By greenglide 19th Jul 17, 8:30 PM
    • 2,836 Posts
    • 1,816 Thanks
    greenglide
    So will you reach the Normal Retirement Age for the scheme in 8 months time? If so you may not be able the get the CETV as that option is normally not available one you reach NRA.

    If it is an unfunded public sector scheme you cannot transfer out anyway. You were asked this in post #5 but did not answer it.
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