Civil Service Pension Transfer

greenglide

However, she has received a form to opt out of the pension (presumably she means a transfer form

But the transfer is initiated by the receiving scheme so it is they who would provide this.

Presumably if she wants to transfer the funds she cannot do it while still contributing?

xylophone

Has she found a receiving scheme to accept the transfer?

Does she need to get an IFA sign off?

Is she fully aware of the implications of opt out and transfer?

http://www.poauk.org.uk/index.php?circulars&newsdetail=20121207-266_opting-out-of-the-civil-service-pension-scheme This is a couple of years old but might be worth a look.

Linton

I hope that your friends really understand what they are doing and the likely financial consequences. However I fear they dont. Please please read though the many threads on this forum regarding leaving a defined benefit pension scheme.

dunstonh

Update-My friend had some form of communication from DBS this week, not sure in what form. However, she has received a form to opt out of the pension (presumably she means a transfer form, I've not seen it) and she has signed it and sent it back

.

Opt out is a specific term. it means not joining or leaving the occupational pension. It does not mean transfer out.

Opting out is nearly always a very bad idea.

But the transfer is initiated by the receiving scheme so it is they who would provide this.

If an opt out form has been sent then it suggests miscommunication as that is not to do with transfers.

CathA

dunstonh wrote: »

.

Opt out is a specific term. it means not joining or leaving the occupational pension. It does not mean transfer out.

Opting out is nearly always a very bad idea.



If an opt out form has been sent then it suggests miscommunication as that is not to do with transfers.

As I said, she told me she has an 'opt out' form, so I'll text her and ask for clarification. I've not seen it so don't know what it says.
Her husband has an IFA, he's recently transferred out of his pension (one of the Railway schemes I believe). This IFA is now acting for her, so presumably he has pointed out the various options.
She is planning to work for a bit longer, don't know if she's planning to stop paying into her pension or not, another question to ask.

I'll get back to you with the answers. Thanks everyone.

atush

I can't believe an actual, real IFA would advise their partner to do something like this.

And your friend should have posted herself as she doesn't seem to be telling you everything?

DaveMcG

Sorry but this thing stinks a bit to me.

My friend is a current member of the 'classic' civil service pension scheme.

she has received a form to opt out of the pension

don't know if she's planning to stop paying into her pension or not

This implies to me that she is actually opting out.

her husband is very keen on it being done.

Ah I see

This IFA is now acting for her, so presumably he has pointed out the various options.

Oh good to know that the industry has still got some free thinkers who can imaginatively find a way to approve a transaction that virtually every insurance company will decline.

Linton

Agree with DaveMcgee and Atush. I fear that unless there are some circumstances of major significance which we are not aware of something is seriously wrong.

CathA

atush wrote: »

I can't believe an actual, real IFA would advise their partner to do something like this.

And your friend should have posted herself as she doesn't seem to be telling you everything?

I don't see her very often, what with work, grandchildren etc. It's sometimes a question of she'll send me things by text or e mail and I have to ask her things that she never thought to tell me, not any deliberate keeping back of info. She's not very good with computers, to be honest. She asked me as I've been down the route of enquiring about transferring out, even though in the end I didn't.

CathA

Oh and by the way, I have pointed out to her it's not a good idea to transfer out, as I found out when asking a while ago. I've also asked her what she will do for a pension when she retires. As I've previously said, her circumstances are different to mine and her reasons for transferring are therefore also different. (Although I think it's a bad idea and have told her so).