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Final salary or CETV scheme

Hi
I'm looking for some advice for my sister who worked for Totaliser Racing (now taken over by Betfred) for 14 years and has since stopped working to become a full time housewife.
Lightcatch (Betfred parent company) are offering deferred members an Enhanced Transfer Value to allow people to move to another pension provider. The letter also says if they do not hear from you they assume you are happy to go ahead, ie get you out of the final salary scheme ( I believe).

Since she is only 35 YO should she take this or stay in original scheme?

Is it possible to just get a lump sum (cash) payment and not bother with pension at all? This would be the preferred option if at all possible.

Hope this clear and look forward to any advice.

Cheers.

Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ... offering deferred members an Enhanced Transfer Value to allow people to move to another pension provider ... i.e. get you out of the final salary scheme ( I believe).

    Is it possible to just get a lump sum (cash) payment and not bother with pension at all?

    No, she can't have cash.

    Unless her position is very unusual she should probably stick to the final salary scheme. She might want to get an IFA to advise her; she should remember that, like plumbers, they do charge for their time.
    Free the dunston one next time too.
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 3 October 2013 pm31 6:07PM
    The letter also says if they do not hear from you they assume you are happy to go ahead, ie get you out of the final salary scheme ( I believe).

    Can this possibly be regarded as good practice?

    It would be normal practice for an IFA sign off to be required by any receiving scheme for the transfer of a Final Salary pension because in most cases, such a transfer is not a good idea.


    https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme
  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    It is sometimes possible to cash in the pension on occasions like this, such as:

    https://forums.moneysavingexpert.com/discussion/4750827

    EDIT: but any letter from the pension company would clearly state that as an option, so if it doesn't - you can't.
  • rpc
    rpc Posts: 2,353 Forumite
    mania112 wrote: »
    It is sometimes possible to cash in the pension on occasions like this, such as:

    It sounds as though they aren't winding up, just trying to push people out.
  • Hi
    Thanks all for the replies/advice. A letter will be sent today declaring no interest in ETV and to stay in current scheme.

    Thanks again for taking time to reply.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Staying in is almost certainly right.

    The way they are doing this - an assumption that everyone wants to transfer out - is something that might merit being reported to the Pensions Regulator since it's not treating members fairly. There's already a lot of concern about enhanced transfer values being used to tempt people to move when they shouldn't.
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The way they are doing this - an assumption that everyone wants to transfer out - is something that might merit being reported to the Pensions Regulator since it's not treating members fairly. There's already a lot of concern about enhanced transfer values being used to tempt people to move when they shouldn't.

    I wholly agree - I simply cannot see how what is virtually "inertia selling"
    can possibly be regarded as good practice, especially in regard to a Final Salary pension transfer.
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