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Final salary or CETV scheme

Rack_Failure
Posts: 55 Forumite
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.
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.
0
Comments
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Rack_Failure wrote: »... 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.0 -
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-scheme0 -
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.0 -
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.0 -
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.0 -
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.0
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