In a 'partnership' pension - should I opt back in to the civil service scheme?

smallb_2

Hello,

I'd be very grateful for any help as I am most confused!

I started my pension with my local police force 5 years ago and opted for the partnership option with Scottish Widows (consensus fund). It seemed a good idea at the time for some reason. I decided to pay in the full 3% extra that I could and I believe that my employer contributes a bit more because of this.

With all the stock market hoo-ha recently I've been wondering whether I did the right thing by going in with the partnersip option.

I can opt back in once only to the civil service scheme.

My question is should I opt back in to the civil service scheme now - would it be worthwhile? I'm 41 now with approx 25 years of paying in left. Have I lost money already by not going in for the civil service scheme ('classic' at the time) when I started?

Very grateful for any help,

Thank you,

B

molerat

The stock market turmoil has probably done your pension more good than harm over the longer term but if you were to transfer it out now that is when you would be likely to lose out.

Did you choose the right option, probably not.

Should you opt back in, probably.

Have you lost out by not being in, more than likely.

The only person who can give you solid information is an IFA and that will cost you but on balance the CS scheme will be way ahead of any money purchase scheme even taking into account the proposed changes.

smallb_2

Many thanks Molerat, very much appreciate your response.

I had a hunch that I'd probably lost out by opting out in the first place. Oh well...spose that's one of life's lessons!

I was a bit confused when you say the stock market turmoil has probably done more good that harm over the longer term and that I maybe shouldn't opt out now? But you also say I should 'probably' opt back in. Wasn't sure which is the right one!

I will have to look into getting the advice of an IFA as you recommend.

Thank you and all the best,

B

molerat

smallb wrote: »

Many thanks Molerat, very much appreciate your response.

I had a hunch that I'd probably lost out by opting out in the first place. Oh well...spose that's one of life's lessons!

I was a bit confused when you say the stock market turmoil has probably done more good that harm over the longer term the cost of units you buy now is cheap and will go up in value and that I maybe shouldn't opt out now? It is a bad time to transfer out your current pension as the value will be low. But you also say I should 'probably' opt back in to the CS scheme. Wasn't sure which is the right one!

I will have to look into getting the advice of an IFA as you recommend.

Thank you and all the best,

B

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Andy_L

smallb wrote: »

Have I lost money already by not going in for the civil service scheme ('classic' at the time) when I started?

As it was classic then yes, lots. Had it been the, newer, Nuvos scheme then probably not.

If you can opt back into classic, rather than nuvos, then do so - however you will probably only be able to get a few years membership until the current changes are implimented

Yorkie1

I'd check very carefully whether the classic scheme is still open for you to return to.

taking_stock

didn't 'classic' end about 10 years ago, to be replaced by premium??
and surely the 'partnership' option has only been available since nuvos came in??

Andy_L

taking_stock wrote: »

didn't 'classic' end about 10 years ago, to be replaced by premium??
and surely the 'partnership' option has only been available since nuvos came in??

Good point, could be a typo by the OP

IIRC partnership existed before nuvos as a legal requirement to provide a pension to those ineligible to join the PCSPS, Although it was only (possibly) worth joining over the DB schems once nuvos came in (and was hammered by the indexation changes)