Civil Service Pension Transfer

jem16

CathA wrote: »

Pay on leaving was approximately £7800 I think, again without looking can't give exact figures.

I'm assuming this is your part-time pay?

As your pension is worked out on your equivalent full-time salary, I would need to know that or at least what part-time percentage you worked.

jem16

hugheskevi wrote: »

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.

Thanks. That may make more sense of the figures then.

CathA

jem16 wrote: »

I'm assuming this is your part-time pay?

As your pension is worked out on your equivalent full-time salary, I would need to know that or at least what part-time percentage you worked.

When I left under VERS my earnings figure used to calculate my preserved pension benefits was £15,788.99 and reckonable service is 6 years 201 days (6.5507) (12 1/2 years at more or less half time hours for most of it). The date that we were asked to transfer from the old one tier pension scheme was 2002. I left 30.3.2012

jem16

CathA wrote: »

When I left under VERS my earnings figure used to calculate my preserved pension benefits was £15,788.99 and reckonable service is 6 years 201 days (6.5507) (12 1/2 years at more or less half time hours for most of it). The date that we were asked to transfer from the old one tier pension scheme was 2002. I left 30.3.2012

Hugheskevi's post explained why your figures are different to what I would have expected.

Just remember that the figures you were given on leaving will increase with CPI until you are 60.

CathA

xylophone wrote: »

I, too, can make little sense of the amounts as given and am wondering whether there could possibly be some confusion with GMP figures?
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I've looked at my CETV figure, GMP figure is nil.


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.

PET?

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.

On my list of things to do when calculator is available.

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.

My thoughts exactly. If I'm going to do it, do it now or at least have the information to make an informed choice before the window of opportunity closes.

xylophone

PET?

Potentially Exempt Transfer

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

CathA

xylophone wrote: »

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



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.

So, to clarify. If I do decide to move this money, and it's not certain I will as I'm just trying to get an idea of my options, what's the best idea? I'm close enough to 55 that I don't want to put it into any fund that's too risky. Ideally I'd like to put it into a pension fund that has low charges, enables me to draw on it at 55, either as lump sum or bits here and there (making sure I don't pay tax on it). I've read about pensions that are the equivalent of 'cash', not much growth/interest but not much risk either? Any suggestions? Thanks.

xylophone

what's the best idea?

Nobody on the board is in a position to say? Your own IFA would advise?

Is the idea that you would transfer out of the CS Scheme into a SIPP and hold the money as cash/near cash?

Example http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/f/fidelity-cash-income-inclusive

CathA

dunstonh wrote: »

Can be a few reasons here.

1 - The scheme you are trying to transfer into is administered by an IFA or administration company and they have to handle all the admin. Not SW. (typically happens with occupational money purchase schemes and some group personal pensions).
2 - The scheme you are trying to transfer from is classed as an occupational pension and SW will not accept liability for the transfer and require an IFA to take on that liability. Many firms will not accept execution only with defined benefit transfers given the default position that they are mis-sold unless proven otherwise.
3 - The plan you are transferring into is not available direct to public and requires an intermediary (not likely to be this as SW normally accept direct instructions).




Most people attempting to make occupational pension transfers are not competent enough to make their own decision. Even if you did execution only, SW would still be liable for the transaction if you complained and would probably find the complaint upheld even if you signed waivers (FOS doesnt accept waivers as being a suitable defence if the person is not knowledgeable enough to know what they are doing)

Not wishing to jump in on someone else's thread, I gather this would apply to me if I try to transfer out from the Civil Service scheme?

atush

Yes, as transferring out of a DB scheme is considered inherently high risk so therefore most of not all schemes would require you to take paid advice