Problems with my pensions department with Transfer value requests

majorwally

With the forthcoming rises in pension contributions in my local government pension scheme, I am looking if it's possible to transfer my pension fund.

However, I asked my pensions dept for a transfer value and they stated they will only send the details to a financial advisor.
Well, I am only considering it at moment and I have no idea how much pension fund I have, so I would like to see, as it's always such a big secret it seems!

Surely they can't put stipulations on what is already mine?
What about freedom of imformation and all that?

Does anyone have any idea how I can get this information from them?

atush

majorwally wrote: »

With the forthcoming rises in pension contributions in my local government pension scheme, I am looking if it's possible to transfer my pension fund.

However, I asked my pensions dept for a transfer value and they stated they will only send the details to a financial advisor.
Well, I am only considering it at moment and I have no idea how much pension fund I have, so I would like to see, as it's always such a big secret it seems!

Surely they can't put stipulations on what is already mine?
What about freedom of imformation and all that?

Does anyone have any idea how I can get this information from them?

The money isn't yours, yet. If it is a FS defined benefit scheme you have no Pot of your own, just what potion would be used for you to this date. And you can NEVER do better in the private market than you would in a DB benefit scheme. Unless you were some kind of financial savant.

An IFA would have to sign off, but wont. AS when you retire on half or less of what your old work friends are getting you would sue the IFA for mis selling.

It is my firm belief you are reading and discussing at work Union mis repersentation of the facts regarding the changes to your pension in future. Yes, you will pay a few % more, and yes like the rest of us work a few years longer. But you will still have a better pension for amt paid than pretty much ANY private sector worker. And you past pesnion is 'safe' from the changes anyway.

Linton

Final salary schemes dont have a pension fund per person. The pension scheme has a commitment to pay you and your colleagues a pension and a large combined pot of money with which to do it. This combined pot of money is owned by the scheme. All you own is the commitment, it is very valuable and you know what it is.

A fund transfer value is up to the scheme to calculate. They will do it on a basis which does not disadvantage ongoing members. You can be pretty sure that the transfer value will be nothing like sufficient for you to match commercially the pension you will be giving up.

No pension company will accept a transfer from a final salary scheme without an IFA approval. An IFA is most unlikely to give that approval unless you have very special circumstances - fatal illness perhaps.

Suggest you read through some of the recent threads on this subject.

If you believe you have special circumstances I strongly suggest you contact an IFA. If not and you try and go ahead with a transfer I fear your username would be justified.

Andy_L

It is possible however, becasue transfering a final salary pension (other than into a different companies FS pension) is almost always a bad decision no private pension will accept such a transfer without a financial advisor signing off on the decision in order to protect them from being sued for a mis-sale.
I suspect then that your pension administrator is not prepared to waste the time/effort on calculating a transfer value (which is only valid for a short period of time) unless the scheme rules oblige them to do so

If you really want to know then you may be able to get an IFA for free via a trade union if you are a member

An increase in future contributions will have no effect on the pension you have built up so transfering will not protect you from that increase.

FoI is unlikey to work - under a FS pension you don't have a fund, you have a promise from your employer to pay out a certain level of pension so that information does not exist and working it out would probably exceed the cost/time limits in the act

majorwally

OK, now I'm really confused.
So what have I been paying into for all these years?
6% of my salary that I couldn't really afford.

My union isn't scaremonging. My contributions ARE going up by 3%, making a total of 9%.
How many private sector can afford 9% of their wages on pensions?

Anyway, I can't afford the rise.
Are you guys saying I can't withdraw from the scheme?

Linton

majorwally wrote: »

OK, now I'm really confused.
So what have I been paying into for all these years?
6% of my salary that I couldn't really afford.

My union isn't scaremonging. My contributions ARE going up by 3%, making a total of 9%.
How many private sector can afford 9% of their wages on pensions?

Anyway, I can't afford the rise.
Are you guys saying I can't withdraw from the scheme?

You have been buying an index linked income that is guaranteed to last from the day you reach retirement age until you die. This index linked income guarantee is far higher than you could have got had you paid your 6% to a commercial pension company.

You are paying 6%, you say soon to be 9%. You can be sure that your employer is also making a very large contribution. You can withdraw from the scheme for future contributions but that would be throwing away the employers contribution. Sounds like a foolish idea to me.

If you cant afford to lose 3% of your salary how on earth will you manage when your salary stops when you retire???

As to how the private sector manage - most private sector employees failing to make large extra contributions to their pensions will have a rather difficult retirement.

atush

majorwally wrote: »

OK, now I'm really confused.
So what have I been paying into for all these years?
6% of my salary that I couldn't really afford.

My union isn't scaremonging. My contributions ARE going up by 3%, making a total of 9%.
How many private sector can afford 9% of their wages on pensions?

Anyway, I can't afford the rise.
Are you guys saying I can't withdraw from the scheme?

Your Union is scarmongering and should be held resposnible (and hopefully will be in future) for encouraging those like you to opt out.

You have been paying 6% into the pot of money for ALL workers, and will get a pension that would cost more than 4X those contribs.

Yes, you can withdraw from the scheme but keep the years accrued to date. It will however be the WORST decision of your life. Period.

And yest Private secor workers can and do put 9% in and more. We have to as to get the same pension as you have would mean contribs of 25% or MORE.

You can't afford the new 3% more? you can't afford NOT to contribute it. Find other ways of cutting expenditure to do it. It will be worth it, I can assure you.

anyway, 3% is the average. Low paid workers won't have to pay any more, some will pay 1.5% more. The fat cats at the top of the food chain will pay 5% more. Which are you?

dunstonh

OK, now I'm really confused.
So what have I been paying into for all these years?
6% of my salary that I couldn't really afford.

My union isn't scaremonging. My contributions ARE going up by 3%, making a total of 9%.
How many private sector can afford 9% of their wages on pensions?

Anyway, I can't afford the rise.
Are you guys saying I can't withdraw from the scheme?

Your union is scaremongering. So much so that you are about to make one of the worst financial decisions of your life based on their misinformation.

Even if you pay 9%, that only equates to 7.2% after tax relief at basic rate (and NI savings will bring that closer to 7%. No alternative option exists that can come close to matching the benefits on this pension.

No IFA is going to transfer your pension as it would be commercial suicide.

And as for public sector making similar size contributions.... most pay that level or more but end up with less back than what you will get.

Meeper

Unions should be banned from even discussing things like this. They had a place in the 70's when there was no employment law. No need for them now other than to stir up trouble and spread misinformation. Shameful. You would be better off funding the additional 3% by stopping your union membership fees.

RichandJ

Meeper wrote: »

Unions should be banned from even discussing things like this. They had a place in the 70's when there was no employment law. No need for them now other than to stir up trouble and spread misinformation. Shameful. You would be better off funding the additional 3% by stopping your union membership fees.

What a splendiferous idea. Are you listening Dave ? Perhaps we could make that compulsory.

majorwally

OK, i take everyone's point, albeit with a pinch of salt as everyone is very anti-union on this thread.
I have had nothing but support from my union from day one, which is a great deal more than can be said for my employers, but that's another story for a rainy day perhaps.

Going back to my original problem, that my pensions dept won't even tell me what the transfer value is. I still feel this is wrong and against my human rights. What right have they to conceal anything from me?