Should i transfer a civil service pension?

loop_3

Hi All,

I've got a pension dilema. I left the civil service in May this year with roughly 3 years service (as far as i remember i was on a final salary scheme). My new company has given me the option to transfer the civil service fund into it's pension scheme but I'm really struggling at the moment to figure out which would be more beneficial for me.

Apologies for the complete lack of information (at work at the moment) but if you need to know more to help just let me know and I'll dig up the paperwork

Loop

dunstonh

Get figures from both and compare which one gives you the best income on a like for like basis. Whilst we cannot judge one or the other without knowing the details, I would be very surprised if the Civil Service pension doesnt come out top by a long way.

martini99_2

One other thing to bear in mind is that if your new employer has a final salary scheme and the transfer is evaluated as x years of service (it will probably be less than the 3 years you were there) it may still be worth transferring if you think your final salary when you leave the new scheme will be significantly higher than your new starting salary.

Sorry about the length of that sentence but I hope you follow my drift

clairehi

Try not to get distracted by the transfer value.

Im assuming you were in the civil service classic/premium scheme not the stakeholder.

What you need to get from both providers is an estimate of what benefits would be provided at retirement either by leaving it alone or by transferring it.
Your new employer will provide you with the forms to request this "computation", and you need to ask for a statement of deferred benefits from the Civil Service.

This will be a direct comparison if the new scheme is also a final salary scheme. If it is a money purchase scheme, there will be no guarantee, you will just get a forecast for different % growth levels and it will be more of a judgement call.

If the new scheme is a money purchase scheme chances are you will be best off leaving the Civil Service pension where it is, dont forget benefits are inflation linked and you have the peace of mind of knowing what you will get.

At least as you have been in the CS more than 2 years you have the option to leave it there, rather than be forced to find a new home for it.