Civil Service Pension Transfer

CathA

Hi all

Don't shoot me down for asking this, but has anybody transferred out their Civil Service Pension? If so, what was the procedure? Thanks.

SomeUser

Ignoring whether or not you should do it (to which the answer is usually a no), all you need to do is request a CETV (cash equivalent transfer value). You have a statutory right to transfer your benefits, unless you left the scheme before 1988 without leaving employment.

Once you make a request, the Transfer Value regulations dictate that your transfer value must be calculated within 3 months of the request and this is known as a "guarantee date".

A written "statement of entitlement" which contains your CETV and the guarantee date must be provided within 10 working days of the guarantee date.

If you exercise your right to take a transfer value, the guaranteed CETV must be paid no more than 6 months from your guarantee date.

BUT schemes do not have to accept a transfer in. If you do find a scheme that is willing to accept a transfer in (although if you are transferring to a different public sector DB scheme then you're more than likely fine), they are highly unlikely to accept any contracted out benefits and in particular GMP because of GMP equalisation issues.

If you were to find a scheme that would accept the transfer, it is highly likely you would be required to take, and pay for, advice. Before a transfer goes ahead you must sign something to confirm the terms and conditions of both schemes (and probably the risks involved).

To get it started, I simply emailed both Councils and asked for a CETV with a full list of assumptions. Unsurprisingly, given how (not) fast local government moves, I've not received my quotes yet but it's still early days. One pension I might leave as I have a whole year's service, but the one where I only have 4 months of service I'll move (I tried to get a refund at the time but my form was returned "addressee has gone away" and then I was outside of the window for getting the refund).

I'm lucky enough to work in the industry so I can run through the calculations myself and get a Certified Financial Planner in my wider team to sign me off without having to pay. Just because I'm doing it though, doesn't mean you should. I was an actuarial analyst, calculating individual cases such as CETVs and doing group calculations such as whole scheme valuations. I tend to have a better understanding than most and I'm thinking of keeping my larger pension there for good reason.

greenglide

CathA wrote: »

Hi all

Don't shoot me down for asking this, but has anybody transferred out their Civil Service Pension? If so, what was the procedure? Thanks.

Where are you planning on transferring it to? Another defined benefit scheme?

You do know that the government is planning on banning transferring out of unfunded public sector schemes (like the Civil Service one) to defined contribution schemes except in exceptional circumstances (with good reason)?

CathA

greenglide wrote: »

Where are you planning on transferring it to? Another defined benefit scheme?

You do know that the government is planning on banning transferring out of unfunded public sector schemes (like the Civil Service one) to defined contribution schemes except in exceptional circumstances (with good reason)?

I'm aware that the government is planning on banning them. I've got a couple of FS pensions and am considering consolidating them. However, just because I'm thinking about it doesn't mean I'm going to do, just exploring the options.

dunstonh

has anybody transferred out their Civil Service Pension? If so, what was the procedure? Thanks.

Depends on where you want to transfer it to. Requirements will vary depending on the destination. So, where do you want to transfer them?

atush

If transferring anywhere than other to another DB scheme, then you will need to hire an IFA as one will be required to sign off on it.

CathA

dunstonh wrote: »

Depends on where you want to transfer it to. Requirements will vary depending on the destination. So, where do you want to transfer them?

I can't transfer to my present FS scheme, it's closed to all transfers. I've got a deferred Nat West pension, whether I can/will/want to transfer it to that is another matter.

I'm well away from pension age, just trying to sort things out
and explore the options. However, al indications seem to be to leave well alone, according to all advice and things I've been researching. At least I'm learning more about pensions, which is no bad thing!

SomeUser

NatWest DB won't accept transfers in. I don't know of any occupational DB which accepts transfers in, apart from Railways pension scheme and even that is for transfers between sections and unlikely to be from external sources. Most closed to new entrants some time ago and now over half the FTSE100 companies have closed to future accrual. Companies don't want DB liabilities - hence no transfers.

An option (although I don't know all of your circumstances and things might change between now and retirement) is to draw your biggest one or two DB pensions and transfer the others at retirement to DC for drawdown. I can't say whether this is right for you, but it's an option - you get a guaranteed income from the DB part and use the rest for flexibility.

hyubh

SomeUser wrote: »

I don't know of any occupational DB which accepts transfers in,

Public sector and USS, mainly between each other. However, there's time limits (typically a year) and you must be still be an active member at the point of transferring.

CathA

SomeUser wrote: »

NatWest DB won't accept transfers in. I don't know of any occupational DB which accepts transfers in, apart from Railways pension scheme and even that is for transfers between sections and unlikely to be from external sources. Most closed to new entrants some time ago and now over half the FTSE100 companies have closed to future accrual. Companies don't want DB liabilities - hence no transfers.

An option (although I don't know all of your circumstances and things might change between now and retirement) is to draw your biggest one or two DB pensions and transfer the others at retirement to DC for drawdown. I can't say whether this is right for you, but it's an option - you get a guaranteed income from the DB part and use the rest for flexibility.

Like you I have requested a CETV from my civil service pension and like you I'm not hanging by the letter box waiting for a response. In fact, when I asked a question recently of them, it took 4 weeks for a response and then the figures they gave me were wrong!! It wasn't a computer generated reply, someone had actually typed it and told me I had a pension of £16,000 plus due from my part time service over 12 years!! I didn't earn that when I working there! Correct figures were promised, but still waiting..........

MittySmit

CathA wrote: »

Hi all

Don't shoot me down for asking this, but has anybody transferred out their Civil Service Pension? If so, what was the procedure? Thanks.

I have transferred out of the Civil Service Pension scheme. The whole process took ~7 weeks from start to finish and it was handled very well by my SIPP provider.

The commutation rate is very poor value and I wouldn't have done so if the defined benefit in retirement was important to me. My reason is that the *£12k that dropped into my SIPP is worth nearly 4x the death benefit of the Civil Service Pension Scheme and that suits me as I'm not planning on hanging around forever so my wife gets a bigger tax free bonanza when I **die.

*part of a much larger pot
**genetics