Civil Service Pension Transfer

MittySmit

atush wrote: »

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'.

In my case the money dropped into my account only last week. Have these changes come about in the last two months? As I understand it from next April these transfers will not be permitted even with an IFA.

My transfer was made up of two pensions #1 LGPS #2 Civil Service Premium one where my 3% contribution was matched by an employers 17%. Both roughly half the total paid and the defined benefits were equally similar.

atush

You are the loophole guy really.

Got in there lickety split, but even before the new regs most IFAs where warned off by insurance companies (like any professional they have insurance) or their firms made executive decisions, or given cases where execution only brokers were fined even though they didnt give advice- you were lucky to find a plucky adviser who would take that risk today.

In fact, i'd go so far to say that if you do, they might be a scammer. A definite % chance. So do double and maybe triple check.

MittySmit

atush wrote: »

You are the loophole guy really.

Got in there lickety split, but even before the new regs most IFAs where warned off by insurance companies (like any professional they have insurance) or their firms made executive decisions, or given cases where execution only brokers were fined even though they didnt give advice- you were lucky to find a plucky adviser who would take that risk today.

In fact, i'd go so far to say that if you do, they might be a scammer. A definite % chance. So do double and maybe triple check.

So I beat the system that makes me feel very special :rotfl:

On a serious note there's no hint of a scam here as it's with a reputable provider and the investment decisions will ultimately be mine and I'm going to have to put a lot more aside to make up for the short fall in lost income (mine is only the equivalent of a tank of fuel per month btw I wouldn't have dreamed of doing the same with a significant amount) and that's my plan.

CathA

Surprisingly my CETV arrived very quickly on the 8th and has a bigger transfer value than I thought, just over £29,000. Leaving aside the wisdom of if I should transfer it (and as it's only going to be a very small pension per year when I'm 60, roughly £1,900 per annum) does anyone know of pension providers that take transfers in from the civil service? I'm 55 in 17 months and my plan is to use the cash, not have it as part of a pension portfolio. I have a bank pension, FS pension with John Lewis, I qualify for full state pension tho that will be probably be adjusted for the years I was contracted out so pension wise I'm ok. I'm looking for a pension fund that I'll be looking to make a drawdown fund in 18 months or so so any ideas? And charges? Thanks everyone.

dunstonh

and as it's only going to be a very small pension per year when I'm 60, roughly £1,900 per annum

£1900 indexed will see a very quick breakeven point and it would be difficult to see any alternative offering better value.

does anyone know of pension providers that take transfers in from the civil service?

All of them. As long as you get an IFA to sign off on it.

And charges?

£3000-£5000 given the very high risk nature of the transaction you want to do.

CathA

MittySmit wrote: »

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

Would you mind giving a rough idea of the charges you paid please?

MittySmit

CathA wrote: »

Would you mind giving a rough idea of the charges you paid please?

I paid a big fat zero in charges as an IFA wasn't involved.

£1,900 may not seem a lot but this will be indexed linked and will sit nicely on top of your state pension plus you'll get £5-6k retirement grant no? You will not be able to match this elsewhere.

My circumstances are not the norm.

CathA

MittySmit wrote: »

I paid a big fat zero in charges as an IFA wasn't involved.

£1,900 may not seem a lot but this will be indexed linked and will sit nicely on top of your state pension plus you'll get £5-6k retirement grant no? You will not be able to match this elsewhere.

My circumstances are not the norm.

Unfortunately I don't get a £5-6 k retirement grant/lump sum, only a very small amount unless I commute some of my pension. I've worked out the maths of it all and yes, it won't take long to make approx £1900 p.a. into the equivalent of £29,000. However, for various reasons that money (less any fees, obviously) would be more use in a lump sum when I'm 55, rather than a drip feed amount starting from when I'm 60. Any ideas anyone?

Thrugelmir

CathA wrote: »

I've worked out the maths of it all and yes, it won't take long to make approx £1900 p.a. into the equivalent of £29,000.

What guaranteed index linked investment return do you expect to make on £29k?

jem16

CathA wrote: »

Unfortunately I don't get a £5-6 k retirement grant/lump sum, only a very small amount unless I commute some of my pension.

Which section of the Civil Service scheme are you a deferred member of?

However, for various reasons that money (less any fees, obviously) would be more use in a lump sum when I'm 55, rather than a drip feed amount starting from when I'm 60. Any ideas anyone?

Perhaps if you give us an idea of those reasons it might help? At the moment no-one can see any benefits for giving up a guaranteed index-linked income.