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    • Pipers
    • By Pipers 14th Sep 17, 4:03 PM
    • 4Posts
    • 0Thanks
    Pipers
    National Grid Pension Transfer Buddy
    • #1
    • 14th Sep 17, 4:03 PM
    National Grid Pension Transfer Buddy 14th Sep 17 at 4:03 PM
    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
    Last edited by Pipers; 14-09-2017 at 4:10 PM. Reason: Adding comment
Page 1
    • HappyHarry
    • By HappyHarry 14th Sep 17, 4:33 PM
    • 438 Posts
    • 687 Thanks
    HappyHarry
    • #2
    • 14th Sep 17, 4:33 PM
    • #2
    • 14th Sep 17, 4:33 PM
    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
    Originally posted by Pipers
    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.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • Pipers
    • By Pipers 14th Sep 17, 6:23 PM
    • 4 Posts
    • 0 Thanks
    Pipers
    • #3
    • 14th Sep 17, 6:23 PM
    • #3
    • 14th Sep 17, 6:23 PM
    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.
    • xylophone
    • By xylophone 14th Sep 17, 6:37 PM
    • 23,393 Posts
    • 13,595 Thanks
    xylophone
    • #4
    • 14th Sep 17, 6:37 PM
    • #4
    • 14th Sep 17, 6:37 PM
    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.
    • xylophone
    • By xylophone 14th Sep 17, 6:51 PM
    • 23,393 Posts
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    xylophone
    • #5
    • 14th Sep 17, 6:51 PM
    • #5
    • 14th Sep 17, 6:51 PM
    "pension buddy" who's transferring out of the National Grid DB pension scheme.
    http://forums.moneysavingexpert.com/showthread.php?p=73095043#post73095043

    A couple of electrical types above.....

    It seems that the Scheme is still

    providing generous transfer values..... as per this ad...http://www.grove-pension-release.co.uk/news/guidance-for-national-grid-pension-schemes/
    • HappyHarry
    • By HappyHarry 14th Sep 17, 7:54 PM
    • 438 Posts
    • 687 Thanks
    HappyHarry
    • #6
    • 14th Sep 17, 7:54 PM
    • #6
    • 14th Sep 17, 7:54 PM
    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.
    Originally posted by Pipers
    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?
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • westv
    • By westv 14th Sep 17, 8:14 PM
    • 4,349 Posts
    • 1,967 Thanks
    westv
    • #7
    • 14th Sep 17, 8:14 PM
    • #7
    • 14th Sep 17, 8:14 PM
    Buddy?
    Damn Americanisms!

    • Pipers
    • By Pipers 14th Sep 17, 9:47 PM
    • 4 Posts
    • 0 Thanks
    Pipers
    • #8
    • 14th Sep 17, 9:47 PM
    • #8
    • 14th Sep 17, 9:47 PM
    Many thanks for your thoughts - as you say protected retirement age is fairly niche! Looking at your options,

    1. I could move and not get my pension for another five years but if I was to do that I would lose the security of having a guaranteed income until 55 (as well as 5 years of pension). It is something I am considering though.

    2. As things stand I can take my pension at 50 with no penalties. The commutation factor is not that good unfortunately and pales in comparison to the transfer value.

    3. They don't allow partial transfers so that's another avenue blocked

    facebook group is a good idea - will look into that. There must be someone out there wanting to do the same thing.......
    • xylophone
    • By xylophone 14th Sep 17, 10:01 PM
    • 23,393 Posts
    • 13,595 Thanks
    xylophone
    • #9
    • 14th Sep 17, 10:01 PM
    • #9
    • 14th Sep 17, 10:01 PM
    There was a window a year or so back when the buddy rules were waived, but they are back in place now.
    See
    http://www.scottishwidows.co.uk/Extranet/Literature/Doc/FP0548


    There was a temporary relaxation of the block transfer rules
    between 19 March 2014 and 5 April 2015. Anyone who used
    this opportunity had to take all of their benefits before
    6 October 2015.
    • HappyHarry
    • By HappyHarry 15th Sep 17, 6:07 AM
    • 438 Posts
    • 687 Thanks
    HappyHarry
    Thanks xylophone. It felt like much more recently. I must be getting old. 😕
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • xylophone
    • By xylophone 15th Sep 17, 11:18 AM
    • 23,393 Posts
    • 13,595 Thanks
    xylophone
    I must be getting old.
    I know the feeling - it deepens every time I pass a looking glass and catch a glimpse of a grey hair ....
    • Pipers
    • By Pipers 24th Oct 17, 8:30 PM
    • 4 Posts
    • 0 Thanks
    Pipers
    Hi, just to update from my initial post. I can do the transfer as long as I do it with any other National Grid (or ex British Gas) member who is looking to transfer out of the DB scheme. The transfer values are very attractive at the moment so there must be plenty of folks out there going through the process. If there are any IFA's out there with a National Grid member in their pipeline please do get in touch.
    • jamesperrett
    • By jamesperrett 24th Oct 17, 10:12 PM
    • 682 Posts
    • 338 Thanks
    jamesperrett
    Are you in a union? Do they have a pensions section (I know Prospect do) and could they help?
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