CIS Personal Pension - With Profits?

dunstonh

Every mention of the GAR refers me back to my original policy. At the time I believe this was referred to as protected rights?

Protected rights and guaranteed annuity rates are two different things.

Some occupational schemes would not accept transfers in of protected rights plans. Protected rights has recently been abolished and reclassified as ordinary rights (or non-protected rights as it is often referred to). So, that problem doesnt exist now.

GARs would not prevent a transfer. It may well make a transfer a bad thing to do but the receiving scheme would not care.

After wading through some transfer paperwork, it appears to be £50 per annum for every £1000. £250 per annum on £5k ?. No annual bonus had been added since 2003.

It is on zero bonus as the value is in the guaranteed annuity rate. Although on this plan, the GAR seems low.

Everything is very vague even on the transfer documents. "A final bonus may be added"

Investment returns are always an unknown. So, they have to be "vague" on what you may get back as they dont know.

Nickolai

Thanks for the advice.

Looking through an explanation of the scheme I received a couple of years ago, the payment of any annual bonus isn't likely for years. The GAR is actually £50 per £1000 on SERPS contributions, £60 was on my contributions.

L&G who my current DC pension is with, I also have pensions in a closed DB and DC scheme, won't touch the transfer unless they see advice from an IFA.

I honestly don't know, I contacted a IFA my father in law recommended but his minimum charge in relation the the £5000 pot made it a bit of a non starter.

Very frustrating, I wasn't allowed to move it for years and now I'm unable to.

robin61

amandajc wrote: »

Many apologies for hijacking the thread but I also have a CIS "with profits" personal pension (although mine is a FSAVC) and I have been wondering about whether to transfer it into my SIPP but I am worried that by doing so I will be losing benefit.

The "Retirement Benefits" section of my schedule states "Premium £57.00. Cash sum £18216 (with profits), Normal Retirement Date .....2019, Guaranteed pension Rate £60.00"

Can anyone tell me what that £60 actually is? and whether transferring is a good idea (I have been paying £57.00 per month (with tax relief taken into account) since Sept 1996). Current transfer value around £17,500.

Thanks in advance

I have one of these as well and when I looked into it I had a pretty good guaranteed annuity rate.

kidmugsy

Nickolai wrote: »

L&G who my current DC pension is with... won't touch the transfer unless they see advice from an IFA.

... I wasn't allowed to move it for years and now I'm unable to.

Have you enquired whether some sort of Personal Pension would accept the transfer? I suggest you see whether Hargreaves Lansdown would accept it into their SIPP - I've always found their service excellent.

Nickolai

kidmugsy wrote: »

Have you enquired whether some sort of Personal Pension would accept the transfer? I suggest you see whether Hargreaves Lansdown would accept it into their SIPP - I've always found their service excellent.

Thanks for that going to have a look. The website seems to say they do take transfers from opted out SERPS scheme's. Have requested the relevant paperwork.

As I've been in company pensions for the last 15 years + with company contributions I've never considered another personal scheme. I see the word SIPP a lot on here but didn't even know what one was 48 hours ago. It looks like a personal version of the L&G worksave DC scheme were are in at work.

dunstonh

Thanks for that going to have a look. The website seems to say they do take transfers from opted out SERPS scheme's. Have requested the relevant paperwork.

If it still says that then its out-of-date. Protected rights was reclassified as non-protected rights in 2012.

I see the word SIPP a lot on here but didn't even know what one was 48 hours ago. It looks like a personal version of the L&G worksave DC scheme were are in at work.

It is an advanced pension wrapper for more experienced investors.

ffacoffipawb

Nickolai wrote: »

The GAR is actually £50 per £1000 on SERPS contributions, £60 was on my contributions.

dunstonh wrote: »

Although on this plan, the GAR seems low.

£50 or £60 GAR rates may be very good, we cannot say as we don't know what escalation rate applies and whether there is a spouse's pension.


3% escalation and 50% spouse (default basis for former protected rights) at a rate of £50 or £60 per mille is actually pretty good.


For a level single life pension, not so good.

dunstonh

£50 or £60 GAR rates may be very good, we cannot say as we don't know what escalation rate applies and whether there is a spouse's pension.

Most of the CIS plans I have seen have two tiers for GARs. One on non-protected rights and one on protected rights. The protected rights GAR is typically around the 3% mark. The non-protected around the 5% mark. Whilst protected rights no longer exist, CIS will use the former protected rights rate.