Civil Service Pension Transfer

CathA

jem16 wrote: »

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

Classic plus, my lump sum so far is about £370, before I commute anything.

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.

I'm aware of the reasons for staying with this pension, but as I've said I've got an index linked bank pension, (non-contributory)that has been sat there since I left in 1989, plus my state pension and my husband has several personal pensions plus an old DC work pension ticking along nicely in the background. I'm not necessarily looking for growth on my civil service money, or to use it for pension. Purely and simply, I want to have the money as a spendable asset, short-sighted perhaps but you're a long time dead. I would like to help one of my daughters with a deposit for a house, pay a chunk off the mortgage, and perhaps have a little nest-egg for those just-in-case moments. I've always been good with money so it's not that I'm going to spend it on shoes and sweeties! Bit of a hare and tortoise thinking perhaps?

jem16

CathA wrote: »

I'm aware of the reasons for staying with this pension, but as I've said I've got an index linked bank pension, (non-contributory)that has been sat there since I left in 1989, plus my state pension

Are you definitely keeping the bank pension as it is? At one point you were talking about transferring that out too.

How much income do you expect to have with the bank pension plus your state pension?

Purely and simply, I want to have the money as a spendable asset, short-sighted perhaps but you're a long time dead. I would like to help one of my daughters with a deposit for a house, pay a chunk off the mortgage, and perhaps have a little nest-egg for those just-in-case moments. I've always been good with money so it's not that I'm going to spend it on shoes and sweeties! Bit of a hare and tortoise thinking perhaps?

It's fair enough if you have a specific spending need although paying off the mortgage might not be the best financial use of the money but it may give peace of mind.

You didn't say what section your Civil Service pension is in?

CathA

jem16 wrote: »

Are you definitely keeping the bank pension as it is? At one point you were talking about transferring that out too.

How much income do you expect to have with the bank pension plus your state pension?



It's fair enough if you have a specific spending need although paying off the mortgage might not be the best financial use of the money but it may give peace of mind.

You didn't say what section your Civil Service pension is in?

Classic plus, I did say but perhaps it wasn't clear.

CathA

jem16 wrote: »

Are you definitely keeping the bank pension as it is? At one point you were talking about transferring that out too.

How much income do you expect to have with the bank pension plus your state pension?



It's fair enough if you have a specific spending need although paying off the mortgage might not be the best financial use of the money but it may give peace of mind.

You didn't say what section your Civil Service pension is in?

Definitely leaving the bank pension where it is. I guess because when I was growing up our family didn't have much money I'm thinking about having a bit of money just there, for whenever and whatever it's needed for. I don't like debt, we haven't actually got any apart from the mortgage and I'd love to pay more off.

jem16

CathA wrote: »

Classic plus, I did say but perhaps it wasn't clear.

Classic Plus comes with an automatic lump sum of 3 times the pension so I'm not sure why you think it doesn't?

See Page 11 of this scheme guide.

http://www.civilservicepensionscheme.org.uk/media/81761/classic-plus-scheme-guide.pdf


If your pension is to be around £1500pa that would give you a lump sum of £4,500.

Is that £1500pa what you expect to get at age 60 or is it what was calculated when you left?

CathA

jem16 wrote: »

Classic Plus comes with an automatic lump sum of 3 times the pension so I'm not sure why you think it doesn't?

See Page 11 of this scheme guide.

http://www.civilservicepensionscheme.org.uk/media/81761/classic-plus-scheme-guide.pdf


If your pension is to be around £1500pm that would give you a lump sum of £4,500.

Is that £1500pm what you expect to get at age 60 or is it what was calculated when you left?

I wish it was £1500 pm, it's going to be around £1900-2000 PER YEAR. My deferred benefits, calculated when I left was £1687 pension, lump sum £367 ish? There was a pension change when I worked there and I transferred from whatever scheme it was into the classic plus, but only had a few qualifying years in either scheme as I was part-time there. Can't remember what the other scheme is without looking at paperwork.

jem16

CathA wrote: »

I wish it was £1500 pm, it's going to be around £1900-2000 PER YEAR.

Sorry - that was my mistake. I did actually mean to type £1500pa and not £1500pm.

My deferred benefits, calculated when I left was £1687 pension, lump sum £367 ish?

Those figures don't make sense. If the pension was £1687pa then the lump sum would be three times that amount - eg £5061.

So either the lump sum is wrong or the pension is wrong.

How many years service did you have and what was the salary on leaving? How long ago did you leave?

There was a pension change when I worked there and I transferred from whatever scheme it was into the classic plus, but only had a few qualifying years in either scheme as I was part-time there. Can't remember what the other scheme is without looking at paperwork.

I would imagine it was the Classic scheme but perhaps you could check?

CathA

jem16 wrote: »

Sorry - that was my mistake. I did actually mean to type £1500pa and not £1500pm.



Those figures don't make sense. If the pension was £1687pa then the lump sum would be three times that amount - eg £5061.

So either the lump sum is wrong or the pension is wrong.

How many years service did you have and what was the salary on leaving? How long ago did you leave?



I would imagine it was the Classic scheme but perhaps you could check?

I'm just reading about the classic plus scheme from the link you sent me, thanks for that.

My equivalent years is 6 1/2 approximately, I worked there for 12 1/2 years part time. I left March 2012 under the voluntary early release scheme with preserved pension as above. Pay on leaving was approximately £7800 I think, again without looking can't give exact figures. Trying to do this, defrost the freezer and talk to someone on Facebook at the same time, multi tasking to the max!!

hugheskevi

Classic Plus comes with an automatic lump sum of 3 times the pension so I'm not sure why you think it doesn't?

Classic plus consists of classic benefits (1/80th accrual, automatic 3 times pension lump sum, NRA 60) for service prior to 2002, and premium membership thereafter (1/60th accrual, no lump sum, NRA 60). Final salary link applies to both sections until membership is deferred/pension commenced.

Classic has automatic lump sum, premium does not. So the OP will have some automatic lump sum, but less than 3 times pensions, and potentially a lot less than 3 times pension.

xylophone

I, too, can make little sense of the amounts as given and am wondering whether there could possibly be some confusion with GMP figures?

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

The OP is not looking to make a return ( except indirectly by paying off part of the mortgage and perhaps gaining a little interest on rainy day/holiday money) - it would however give her satisfaction to assist her child to buy a home sooner rather than later.

Making a lump sum gift now might have its attractions from the point of view of a PET for IHT purposes.

Normally the idea of transferring out of a DB scheme is a poor idea but one has to consider circumstances.

The OP has previously said that she plans to leave her deferred FS pension with Natwest until SRA and that she is currently contributing to a workplace pension.

She will draw her state pension in single tier - she might wish to obtain a statement at the end of this year when it seems that the DWP calculator will be up and running.

It seems that her husband will be comfortably circumstanced at retirement.

Taking all the above into consideration and the fact that the government is putting regulations into place concerning transfer out of unfunded Public Service Schemes, if she does want to do it might be as well to get on with it.