WHAT TO DO, POLICE PENSION ETC private isa

montrose5

Hello mate, don't forget transfering your pensions will also give you better death in service benefits for your family if you die. Also I would have thought Unilever pension would rely on the stock market (nuff said!). I'm job as well and don't know of anyone who hasn't transferred in outside pensions

tarquinbrandruf

montrose, thanks for replying mate.

I have had some good sound advice from a friend who is high up in the lloyds group.

I am in the process of transfering my army pension across, keeping my unilever pension going, basically my unilever pension gave me a £18,000 lump sum and £2000 a year at todays rate for a 17 year pension , the transfere value the police offered almost 6 years service and was £8000 and £1000 if I transfered it across, a huge chunk taken from the pension.

calculations where done, and its better to keep the unilever pension and have 20 years in the police pension, and when available set up another savings plan or pay the mortagage of so my pensions go further when I retire.

Ian_W

tarquinbrandruf wrote: »

I am in the process of transfering my army pension across, keeping my unilever pension going, basically my unilever pension gave me a £18,000 lump sum and £2000 a year at todays rate for a 17 year pension , the transfere value the police offered almost 6 years service and was £8000 and £1000 if I transfered it across, a huge chunk taken from the pension.

It's your pension and your decision but those figures look decidedly dodgy to moi!! I can't say whether that applies to the unilever one but certainly as far as the PPS is concerned.

As I said before as a PC you're on an incremental pay scale that tops out at 10yrs service, so I'm using the top rate (in to-days money) because, if you don't get promoted, that will be your FS. Get your pensions dept or Federation Rep to check this but I'll detail how I've worked it out (so you can check the maths):
£35,610 (top rate PC) x 6.2 (unilever service counting) / 70 (annual pension accural rate) = £3154 (gross pension). If you take the maximum 25% tax free lump sum that is £3154/4 x 13.9 (commutation factor at age 57) = £10,960 with a residual pension 0f (£3154 x 3/4) = £2365pa.

So on that basis PPS gives a higher pension though lower lump sum but in a way you're comparing apples with oranges because your age when you get the unilver pension will be 65 as against 57 in the PPS. So by the time you get the "better" amount from unilver you'll have already drawn £29,880 from the PPS (lump sum + 8x residual pension). If you want to take the unilver one at 57 I'd hazard a guess that you'll face a hefty actuarial reduction - if they will allow it at all!

I have had some good sound advice from a friend who is high up in the lloyds group.

Hmmm. Now remind me, why are my LLOY shares a fraction they once were? Oh, that's right, senior Lloyds management added up the HBOS bad debts!

tarquinbrandruf

Bloody hell "w ", you have gone messed me up again now!!!! ha ha.

U no what I am lost with this.

I suppose if I wanted to transfer my unilever pension now, where as 2 years ago it was on a salary of £21,000 ish, it would of bought me more years.
Now I am on £26,400 so the transfere value will buy me even less than the 6 years stated , as my wage has gone up.

I am lost , dont know what to do for the better.

your right about lloyds though.
thanks for helping mate , much appreciated.

kev

Ian_W

tarquinbrandruf wrote: »

I suppose if I wanted to transfer my unilever pension now, where as 2 years ago it was on a salary of £21,000 ish, it would of bought me more years.
Now I am on £26,400 so the transfere value will buy me even less than the 6 years stated , as my wage has gone up.

Probably, kev, but the value ain't just based on your salary - it takes into account better benefits of PPS and the one that really B@LLS'S UP your original calcs, the fact you receive it 8yrs earlier.
Ask them for a revised transfer value, see how many years it will buy and do the calc I've done above. If you're gonna get £30K from the PPS for that service before the unilever one even starts, it's difficult to see the unilever one ever catching up!

Bloody hell "w ", you have gone messed me up again now!!!! ha ha.

Always pleased to help!

Flash_G_2

tarquinbrandruf wrote: »

At 57 years old when I retire I will only have in 27 years in the pension fund though, when I need 35 to get a decent pension, a short fall of 8 years .
I am waiting on a figure to buy back 5 years , but my understanding is that I have to pay that every month from now untill I am 55, I think that is going to be about 250 pound every month , and will go up as my pay goes up.

I could invest that else where and make more than that would give me back.

kev

I am curious if you are concerned about losing 8 years of your pension why would you consider retiring at 57?

The new pension scheme allows you to retire at 60.

montrose5

Flash_G wrote: »

I am curious if you are concerned about losing 8 years of your pension why would you consider retiring at 57?

The new pension scheme allows you to retire at 60.

Quite right Flash, in fact if you go for promotion and the lobotomy you can stay on until 65