Transferring pension

Nerys_2

I have a very small pension pot from a private provider and I thought it sensible to pay it into my USS defined contribution scheme. The transfer value stated by the company was just over £9,000 but USS tells me it is worth £10,000 (good!) and would buy me 191 days pensionable service. I am almost sure that it is a good idea to transfer the money rather than wait for a relatively small sum in 12 years time - I suppose I just want some reassurance. Thanks!

hyubh

Nerys wrote: »

The transfer value stated by the company was just over £9,000 but USS tells me it is worth £10,000 (good!) and would buy me 191 days pensionable service.

Quoting 191 days pensionable service seems to imply a final salary service credit rather than a CARE pension credit - is that correct? Not saying it isn't, but a FS service credit could prove particularly valuable if you get promotions over time (although conversely, its value would slowly erode if your pay stagnated in the long term). On the other hand, if it is a CARE pension credit, find out from the docs what revaluation rate it attracts (i.e., CPI, CPI capped to x%, etc.).

Your_Hero

Nerys wrote: »

I have a very small pension pot from a private provider and I thought it sensible to pay it into my USS defined contribution scheme.

Defined Benefit

The transfer value stated by the company was just over £9,000 but USS tells me it is worth £10,000 (good!) and would buy me 191 days pensionable service. I am almost sure that it is a good idea to transfer the money rather than wait for a relatively small sum in 12 years time - I suppose I just want some reassurance. Thanks!

Difficult to say because we know nothing about your previous scheme. It would also depend on what exactly 191 days of pensionable service mean, i.e. how much more pension will that buy you, so we need to know your income, and I believe it's a 1/80th scheme.

Nerys_2

thanks for your replies - it is a final salary scheme (at the moment). I was in the NHS pension scheme but for some silly reason opted out for a while and paid into a Sun Alliance scheme - I just assumed that they would pay me a very small pension or let me take the cash in 2021 when I reach 65. I suppose I was just assuming that transferring my money into my USS pot would be the best option but clearly I should find out more. I am planning to leave work at 54. Thanks

hyubh

Nerys wrote: »

thanks for your replies - it is a final salary scheme

I was going to query whether you would therefore be inside a time limit given the FS section closed to new members in 2011, but I see non-Club transfers into the USS (which this would be) don't have a time limit, other than the need to still be an active member:

http://www.uss.co.uk/Factsheet%20List/Factsheet%202%20-%20Transfers%20to%20USS%20FS.pdf

I am planning to leave work at 54.

Does this mean you're looking to draw your USS pension early as well? If so the service credit from the transfer in could attract a larger actuarial reduction, proportionally, than your main benefits (see p.5 of the previous link).