Civil Service Pension Transfer

SomeUser

MittySmith - which SIPP provider?

MittySmit

SomeUser wrote: »

MittySmith - which SIPP provider?

Hargreaves Lansdown

CathA

MittySmit wrote: »

Hargreaves Lansdown

I was going to ask the same question! Did you have to get it signed off by an IFA for it to be transferred out? How long did it take to get a transfer value from the civil service?

MittySmit

CathA wrote: »

I was going to ask the same question! Did you have to get it signed off by an IFA for it to be transferred out? How long did it take to get a transfer value from the civil service?

No IFA required just had to write a letter with a very specific statement absolving HL and Civil Service Pension Scheme of all responsibility and acknowledging the undertaking carries risk. The transfer value came within a matter of weeks.

There are very few good reasons to move the funds away from a defined benefit scheme (I've detailed mine to avoid doubt).

CathA

MittySmit wrote: »

No IFA required just had to write a letter with a very specific statement absolving HL and Civil Service Pension Scheme of all responsibility and acknowledging the undertaking carries risk. The transfer value came within a matter of weeks.

There are very few good reasons to move the funds away from a defined benefit scheme (I've detailed mine to avoid doubt).

Without enquiring too deeply into your personal circumstances, was ill health in some way connected to your transfer?

dunstonh

No IFA required just had to write a letter with a very specific statement absolving HL and Civil Service Pension Scheme of all responsibility and acknowledging the undertaking carries risk. The transfer value came within a matter of weeks.

That is brave of them. When the stance from the regulator is that they are effectively mis-sold unless proven otherwise, it would be interesting to know how they would support that in the case of a thematic review.

xylophone

Without enquiring too deeply into your personal circumstances, was ill health in some way connected to your transfer?

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

It would seem so- one assumes that the OP's comment relates to more than that a relative died young,

MittySmit

CathA wrote: »

Without enquiring too deeply into your personal circumstances, was ill health in some way connected to your transfer?

Yes and no. I'm 37 now and have ~£150k in my SIPP. The defined benefit really doesn't alter my outlook should I outlive my father (early on-set dementia aged 67), grandfather and great grandfather (both died early 50s. If I defy the odds I've at least got something to fall back on. I'm outwardly very healthy (not been to the doctors in over twenty years) but so were all the men on my paternal side until the reaper came knocking.

I also fly a lot recreationally and that's playing roulette with my life at roughly 2% every year so if I carry on until retirement that's a 50% chance of dying (3 people I have known personally have sadly died in flying accidents). I hope it isn't me but the extra £9k (as opposed to £3k) would come in handy should the worst happen.

MittySmit

dunstonh wrote: »

That is brave of them. When the stance from the regulator is that they are effectively mis-sold unless proven otherwise, it would be interesting to know how they would support that in the case of a thematic review.

I agree 100% with this statement.

atush

No IFA required just had to write a letter with a very specific statement absolving HL and Civil Service Pension Scheme of all responsibility and acknowledging the undertaking carries risk. The transfer value came within a matter of weeks.

I am not sure they would still do this now today, esp in light of is the pension funded or unfunded? Govt has or will ban unfunded schemes being transferred. 2, the regulators have found against companies that let people make this kind of transfer (even with the paperwork mentioned above) and the companies had to pay compensation even though it was done 'execution only'.