Civil Service Pension Transfer

CathA

xylophone wrote: »

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

I don't have an IFA at the moment. I'm having difficulties trying to find one to take this on, bearing in mind
the problems that can incur with the FCA.



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

My plan is to pay off the mortgage and help one of the kids with a deposit for a house. , not as a pension

xylophone

My plan is to pay off the mortgage and help one of the kids with a deposit for a house. , not as a pension

But you would be seeking to transfer into a new pension arrangement.

As I understand it you are currently 53 years old. You have a deferred Civil Service pension. This is an unfunded public service defined benefit scheme.

As has been explained before, under current rules you can ask to transfer out of the scheme but this would have to be into a new pension arrangement. (SIPP,PP etc)

As has also been explained before, it is likely ( but not completely certain - see https://forums.moneysavingexpert.com/discussion/5053691 ), that any receiving scheme would require you to take advice from a properly qualified IFA.

If you managed to get the transfer arranged, a certain sum of money would be transferred into the new pension.

You might choose to invest this ( but since you would want to access the money within two years, you might regard the risk of loss as too great so would either stay in cash ( earning virtually nothing) or in near cash (as above) earning a tiny amount.

After the new rules come into effect, transferring out of an UPSS will become somewhat problematical.

http://www.pensionsadvisoryservice.org.uk/pension-reform/budget-2014

"Transfers from DB schemes to defined contribution schemes will be restricted for members of unfunded public sector schemes, although you may be allowed to transfer in very limited circumstances."

jem16

CathA wrote: »

I don't have an IFA at the moment. I'm having difficulties trying to find one to take this on, bearing in mind the problems that can incur with the FCA.

My plan is to pay off the mortgage and help one of the kids with a deposit for a house. , not as a pension

As xylophone says, you will first of all have to transfer to a pension as you are too young to access pension funds at the moment.

Your second problem is that no IFA can legitimately claim that what you are proposing to do is in your best interests and that is what they have to do to prove that they have given good advice.

CathA

I know I can't just transfer it out and put it just anywhere, and that it will have to go into some form of pension, either stakeholder or SIPP. As xylophone points out, I would prefer to leave it as a cash or near cash pension with the option of starting to draw on it when I'm 55. I can appreciate that an IFA will not say it's in my best interest to do what I want, as they don't want to be clobbered by fines from the FCA. I can also appreciate that what I want to do may not be thought of as the best idea, but that is my choice. It seems to me that the FCA is taking a nanny-state mindset to tell everyone what they think is best for them, after the huge problem caused by the PPI mis-selling issues. I regard myself as pretty clued up financially (especially about pensions after the last few weeks, thank you all!) After all, I worked in a bank, ran several funds for the MOD and find figures fun. (No sense of direction, tho but you can't have everything!) Right, rant over, but I still think the FCA has gone too far the other way.

xylophone

I can also appreciate that what I want to do may not be thought of as the best idea, but that is my choice.

You do have a choice. You could approach HL say (as Mitty did) on the basis that a) you have a deferred Natwest pension, b) you are contributing to a DC occupational pension, c) you expect a state pension, and d) you are married and your spouse is comfortably pensioned.

In these circumstances HL might be prepared to consider your case for transfer without advice.

Or you can approach an appropriately qualified IFA and put your case - he will no doubt put to you that a transfer would mean that you would be losing financially but as you would hardly be a pauper in retirement if you do as you propose, might be prepared to sign it off.

It is up to you really to consider the options and explore the possibilities.

CathA

xylophone wrote: »

You do have a choice. You could approach HL say (as Mitty did) on the basis that a) you have a deferred Natwest pension, b) you are contributing to a DC occupational pension, c) you expect a state pension, and d) you are married and your spouse is comfortably pensioned.

In these circumstances HL might be prepared to consider your case for transfer without advice.

Or you can approach an appropriately qualified IFA and put your case - he will no doubt put to you that a transfer would mean that you would be losing financially but as you would hardly be a pauper in retirement if you do as you propose, might be prepared to sign it off.

It is up to you really to consider the options and explore the possibilities.

Thanks for that. I may give HL a ring. It's just one more thing to add to my ever-increasing to-do list, but that life could be easier!!

CathA

MittySmit wrote: »

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.

If you don't mind me asking, how did HL approach the transfer issue? Was it simple enough once you'd explained or was there a variety of hoops to jump through? What fund/pension scheme did you go for in the end?

xylophone

Mitty stated that he has a SIPP with Hargreaves Lansdown to which his pensions were transferred.

You have indicated that you would wish to access the new pension within a comparatively short time of transfer so that as discussed before, you might want cash/near cash - this does not appear to be so in Mitty's case - although he mentions some possible health/longevity concerns, his time scale seems rather longer than yours?

And the type of transfer you propose seems to be very much on a case by case basis, so the approach he took might not be the one that you would follow - you must do your own research?

As a start, have you seen http://www.hl.co.uk/pensions/sipp/transfer-to-the-vantage-sipp

"If you have a final salary pension, or another type not listed above, please call our Pensions Helpdesk on 0117 980 9926 for more information."

CathA

xylophone wrote: »

Mitty stated that he has a SIPP with Hargreaves Lansdown to which his pensions were transferred.

You have indicated that you would wish to access the new pension within a comparatively short time of transfer so that as discussed before, you might want cash/near cash - this does not appear to be so in Mitty's case - although he mentions some possible health/longevity concerns, his time scale seems rather longer than yours?

And the type of transfer you propose seems to be very much on a case by case basis, so the approach he took might not be the one that you would follow - you must do your own research?

As a start, have you seen http://www.hl.co.uk/pensions/sipp/transfer-to-the-vantage-sipp

"If you have a final salary pension, or another type not listed above, please call our Pensions Helpdesk on 0117 980 9926 for more information."

Thanks for that, I'm having a look now. I would like to say that everyone's help regarding pensions has been really great, and thank you all. Decisions, decisions, what to do?