serious ill health retirement

atush

CathA wrote: »

re transferring out of Civil Service Scheme. It is theoretically possible to transfer out of this as of other public service schemes ( funded or not) but because any receiving scheme would require a sign off by an IFA qualified in pension transfers, and in most circumstances you be hard put to find one to do it, very difficult.

The OP's circumstances are such that an IFA might be prepared to sign off the transfer.




"Transfers from DB schemes to defined contribution schemes will be restricted for members of unfunded public sector schemes, although you may be allowed to transfer in very limited circumstances. Some safeguards will be put in place to protect individuals."

Of course the limited circumstances might include those like the OP's.


This is in place of the original proposals that would have restricted transfer out of all public service schemes whether funded ( eg LGPS) or not.

Indeed, there were even proposals to restrict transfers from private DB schemes.



The major attraction of transferring to a DC scheme after 2015 is presumably the ability to take the whole pension pot in a lump sum after tax on the 75 % of it that is not tax free.

Well, you learn something new every day! I was under the impression (as was my previous manager) that civil service pension transfers were a complete no-no. In fact, my manager and I were discussing this very subject yesterday at lunch. She still works for the MOD in a very high up position, and would obviously be in a position to have more information than I do, as I left a few years ago. Reading from the link you sent, it seems like the OP may have a case for transferring out. My apologies for giving the wrong info.[/QUOTE]


I agree transferring is generally a No No. AS the pension will be more valuable taken as is.

Unless you are ill and likely to die soon/very young and perhaps have no spouse or dependents to use the survivors benefits.

mexico2372

Hi guys, and girls...

Yes, i have called the My CSP and even have asked for a CETV to see about transferring to which they said that it is no problem but they would have to work it out then get back to me.
I spoke to one of the advisers and they seemed to think it was ok to transfer if i wanted.
Seems like i am dying just early enough before the new rules come in next year...:rotfl: Mind you, even then the rules still seem open to interpretation as to certain extreme circumstances where people would still possibly transfer.

I have an IFA on the ball right now but there seems to be slight confusion as to how the final lump sum would've been worked out if i was just taking from the Civil Service and not transferring.
It seems to say it's only 5 times the yearly amount with no enhancements or extra bonuses. But he says there seems to be other contradicting wording on this that he has seen and that it could in fact be more than just the 5 times the yearly amount and if it indeed is only 5 times the yearly amount then it is tantamount to daylight robbery considering what it will actually be worth in total so transferring seems like it will definitely be the way to go for me. Especially as i am single with no dependants, as a few of you previously have said.

I have called again to get someone to contact me to confirm 100% as to how a final lump sum payment would be worked out if i just wanted to cash it in as opposed to transferring so i'm also waiting on confirmation on that too.

CathA

I rang the CSP today and was told that anyone can transfer out if they want to, which was a surprise!! The lady said as long as the receiving scheme accepted transfers than that's ok. I asked her about the possibility of the government banning transfers from next year and she didn't know anything about it. Mind you, having worked for the Civil Service myself, that's no surprise as many a time information has taken a long time to filter through to the people it affects. Good luck Mexico, hope it all goes well.

jamesd

mexico2372, yes, daylight robbery is a good description of five times. Glad you have an IFA helping out now!

mexico2372

Well,

Firstly, thanks Cath, fingers crossed it all goes well

So, i am waiting on the CETV coming through so there's not much i can do right now but wait on it. I did het another 2 IFA's saying thanks but no thanks to dealing with this but it seems like they were answering to a large company who told them they would not deal with it.
Is this going to be a big problem to get this transferred as i said in an earlier post? All so far have refused apart from 1 and even then he said he would have to check with the company he uses too. Some refused as they are not qualified to deal with pension transfers and a couple for other vague or no reason at all. It certainly seems to be proving to be a problem i think.

I saw James saying earlier about asking one of the IFA's here but i have no idea who they are.

As for the final amount i would receive, i got confirmation for this pension.

It is a bit bizarre as she said it's my yearly pension (£3,731.61) x 5 MINUS the lump sum (£11,194.81) leaving £7.463.24.......but then ADD the exact same amount as the lump sum on to it making it £18,658.05 maximum.

Make of that what you will, there is no explanation for the taking away of the yearly lump sum then adding it back on again but that's the way she has set it out to me in her email.

So, as a few said correctly on here, it really is a low amount compared to what it could possibly be worth by transferring then withdrawing.

It just seems that getting an IFA to take it is more of a problem as most so far need to go and check with their company, boss, or whatever and do not seem to want to take it on and sign it off when i withdraw it all, or they are just not qualified in dealing with such transfers.

Maybe just going to have to cash it in as it is as i have enough to worry about with keeping my cancer under control without the stress of whether i can get anyone to deal with this after all...:(

mexico2372

jamesd wrote: »

mexico2372, yes, daylight robbery is a good description of five times. Glad you have an IFA helping out now!

Well, it seems like my IFA is not so sure now as he now tells me he will have to check with his company and see if he is allowed to do this or not....:(

xylophone

http://www.fca.org.uk/firms/financial-services-products/investments/pension-transfers

Example

http://www.jacobsfinancial.co.uk/pension-transfer-advice/default.aspx


http://www.unbiased.co.uk/find-an-adviser

jamesd

A number of IFAs have posted here, dunsonh would be my first choice if it turns out that your IFA isn't allowed to do it by his compliance team.

There are two issues for IFAs:

1. Some won't be qualified to do the relevant calculations to see whether a person in a normal situation would be better off or not. But your situation is not one where that calculation is required so that is irrelevant really.

2. The FSA and now the FCA have been quite hard on inappropriate transfers out of defined benefit pensions like yours and they are presumed to be bad advice unless proved otherwise. Yours is an obvious case where it is right to transfer out. However, the risk is there and some compliance teams or IFAs would not be comfortable with it.

Essentially you're suffering increased hassle for a good case because of all the bad cases that happened in the past that are completely irrelevant for your own circumstances.

I checked one unadvised place that often can be helpful, Hargreaves Lansdown. By policy they will not take transfers from unfunded defined benefit pension schemes like the Civil Service one. They would take them from funded public sector schemes, after IFA advice.

CathA

mexico2372 wrote: »

Well, it seems like my IFA is not so sure now as he now tells me he will have to check with his company and see if he is allowed to do this or not....:(

I did ask specifically if any transfer needed signing off by an IFA (both for your sake and for mine) and the lady on the phone said no. (?) She said as long as the receiving scheme took transfers it is fine, but obviously they suggest to seek financial advice to ensure death benefits, partners pensions etc are taken into account, although that's not necessarily relevant in your case. Her words were 'It's your pension, so you can do what you like with it'! I'm waiting for a transfer figure, just out of interest, so see how long that takes.

xylophone

I did ask specifically if any transfer needed signing off by an IFA (both for your sake and for mine) and the lady on the phone said no. (?) She said as long as the receiving scheme took transfers it is fine,

It is likely that the receiving scheme will not accept a transfer without an IFA sign off.