DB scheme or SIPP?

utigers

Hi there I have a DB scheme that I no longer pay into and dont really understand. This is what it is worth today:

Total non guaranteed transfer value of benefits not including AVCs £10,251.00
In respect of Post April 1997 pensionable service
£10,251.00
Amount of Transfer Value that is subjected to increases at:
5% or the rise in the cost of living in the UK if less
£10,251.00

Total Annual Revalued Pension as at today's date £995.34

How do these work? Benefits? Do they go up each year?

I was considering moving it into my SIPP to combine them?

However the Value at £10k and the £995 annual pension seems a very good income? If I understand it correctly?

Any ideas?

Thanks

jem16

utigers wrote: »

How do these work? Benefits? Do they go up each year?

Yes they will go up in line with either CPI or RPI each year.

I was considering moving it into my SIPP to combine them?

That would be a really bad idea and you would need to employ an IFA to sign off such a transfer.

There is a very small chance that you might be one of the very few that would gain from such a transfer but around 99 times out of 100 it's not a good choice.

However the Value at £10k and the £995 annual pension seems a very good income? If I understand it correctly?

Any ideas?

Thanks

It is good value - leave it where it is.

atush

Very very good value. Dont touch it.

utigers

OK thanks for the replies.

I'm going to look at the details, but are we sure this figure goes up?

jem16

utigers wrote: »

OK thanks for the replies.

I'm going to look at the details, but are we sure this figure goes up?

This would suggest that it does as that is what revalued means.

Total Annual Revalued Pension as at today's date £995.34

The only way to be sure though is to ask. What pension scheme is it?

utigers

jem16 wrote: »

This would suggest that it does as that is what revalued means.



The only way to be sure though is to ask. What pension scheme is it?

Thanks jem. The sentence with £995 in it, is a quote ffrom my statement?

Its a Centrica DB pension scheme.

DB modeller:

Retiring at age 65 years 0 months
Lifetime Allowance percentage 1.59%
Unrestricted Defined Benefit Pension (before reduction for early retirement, cash and scheme maximum) £995.40
Annual Pension £995.40
Cash Lump Sum £0.00
Basic amount (accrued) £995.40
On your death, after retiring a pension may be payable to your Spouse/Registered Civil Partner £497.76

The main reason I would like to understand this is I had written off as 'worthless'. I now want to factor its 'worth' into my pension/retirement calculations.

Thanks

PeacefulWaters

A grand a year index linked is certainly a useful part of retirement planning.

Treasure it!

mgdavid

utigers wrote: »

OK thanks for the replies.
I'm going to look at the details, but are we sure this figure goes up?

it will increase by either RPI or CPI; this will be detailed in the Scheme Rules, if you don't have a copy and can't find a copy online then phone the Scheme Trustees / Administrators and ask for a copy as you are entitled to it.