Getting the value of my pension

Theorus

I have a teacher's pension that pays me £320 per month net. I contacted Teachers Pensions to ask them what the value of my pension is (I think this is called the (Cash Equivalent Transfer Value). I don't want to transfer the pension, just to know its value. They replied to say that I must pay a fee of £184 + vat to get this information! It seems unbelievable to me that I have to pay to find out the value of my pension. I got the values of small pensions I have from Prudential, Sun Life, L & G and Saga without any problem or fees. Is it really true that I have to pay so much to find out the value of my teacher's pension?

molerat

If your pension is already in payment then it no longer has a CETV.

Theorus

The Teachers Pensions people didn't say this. What they said was: "When a member has already retired, all CETVs issued incur a basic charge of £184.00+VAT."

dunstonh

. I contacted Teachers Pensions to ask them what the value of my pension is

We can do it for free. its nil. To give you a CETV would require them to unwind the pension and whilst it is technically possible, it is an extremely rare thing to happen.

They replied to say that I must pay a fee of £184 + vat to get this information!

Which seems fair enough. Someone needs to pay for the work and that will either be you, other members or the taxpayer. You are creating the work so its only fair you pay it.

It seems unbelievable to me that I have to pay to find out the value of my pension.

No more unbelievable than someone asking the value of a pension that doesnt have a value.

I got the values of small pensions I have from Prudential, Sun Life, L & G and Saga without any problem or fees.

Not the same thing. These will be money purchase plans with value. Not defined benefit plans which do not operate with a value.

Drp8713

I think you may find that are assuming you want a CEV for divorce.

Theorus

dunstonh wrote: »

Not the same thing. These will be money purchase plans with value. Not defined benefit plans which do not operate with a value.

Ignorant though I may seem, I have no idea what that means.

xylophone

No more unbelievable than someone asking the value of a pension that doesnt have a value.

The pension does have a value.


A CETV might be required after a member has retired and is getting a divorce.

The form says

"Request for transfer value (CETV): £184
This will be charged:
• for any request received less than 12 months after the date of
issue of the last CETV;
• in all cases where the scheme member has retired;
• in all cases where the request is made less than 12 months
before scheme member’s normal pension age, or when the
scheme member has already reached that age."

Presumably if the member just wants a quote for information or to satisfy his curiosity, the charge is the same?

Linton

Can you make it clear whether you are actually drawing the money now?

Assuming you are....

A DC pension such as the small ones you hold consists of a pot of invested money. This has an obvious value - the pot total.

Your teachers pension only consists of a guarantee to pay you £320/month net (or rather the equivalent gross). There is no personal pot. Its value as a lump sum is not immediately obvious. If you really want a value someone has work an equivalent value based on the guarantees, your assumed life expectancy, possible gilt return rates and whatever the scheme rules say etc etc. Clearly a non trivial piece of work.

Its difficult to see what use the value of a pension in payment could be. You cant compare it with anything because teachers CETVs dont seem comparable with private sector rates. And you are unlikely to get very far if you asked for the money.

Theorus

Many thanks for the explanation. I had assumed that they would know the value of my pension since they would have used this value to calculate how much to pay me each month. Obviously it doesn't work like this. I have been receiving this pension for 6 years. Yes, I need to know the value in connection with divorce proceedings, but I'm afraid that £184 + vat is completely beyond my means. I'm lucky if I get £10 left over at the end of the month when my bills have been paid - at the moment I seem to be almost permanently in overdraft. I could only afford to go ahead with the divorce proceedings because I got a reduced court fee on account of my circumstances. Not sure what to do now - £184+ is simply impossible for me.

xylophone

Can your spouse not contribute towards the cost?

Were you in a union which had a benevolent fund?

Example http://www.nasuwt.org.uk/MemberSupport/LegalandBenevolence/NASUWTBenevolentFund/

http://www.divide.org.uk/charitydetail/36/