Transfer out of Armed Forces Pension

dunstonh

So, nothing in relation to what the OP was saying then.

Good_bad_and_ugly

No, but I didn't say it was. You asked me a question in principle, and I answered in principle.

It's wrong for you to simply tell someone they'll lose 'a fortune'. You don't know that. Check the AFPS GAD mortality rates.

jem16

Good_bad_and_ugly wrote: »

Well, he hasn't "clearly demonstrated" at all.

So you think that the OP has a clear understanding of his pension scheme based on these comments?

wallis873 wrote: »

leaving it where it is the sum will not change and I will also be unable to take out a lump sum at the age of 55

You're asking 'if' they're fragile?!

No I wasn't.

Good_bad_and_ugly wrote: »

All I'm saying is, to dogmatically tell someone to stick in a public sector scheme is outdated (at best) information/advice.

As the OP doesn't have another DB pension to transfer to, saying anything else would be outdated now.

Good_bad_and_ugly wrote: »

Deferred DB to DB permissible. Then out of some, such as the NHS, permissible in some circumstances.

NHS is unfunded so has the same ban attached to it.

Good_bad_and_ugly

You don't need to have a pre-existing DB recipient scheme.

No, I don't think he has a clear understanding. Which is why he deserves objective and informed assistance.

jem16

Good_bad_and_ugly wrote: »

You don't need to have a pre-existing DB recipient scheme.

No but he would need to join one as explained in Post 7.

Which is why he deserves objective and informed assistance.

Why don't you provide it then?

Good_bad_and_ugly

Jem,

Look at the new regs properly. If you are in the NHS scheme for under two years, you can have a refund of contributions.

jem16

Good_bad_and_ugly wrote: »

Jem,

Look at the new regs properly. If you are in the NHS scheme for under two years, you can have a refund of contributions.

If there has been a transfer in that would increase the qualifying membership past 2 years so no refund would be due.

Apart from that are you really suggesting that the OP would wish a refund of contributions when none would have been made and in the process lose all of the employer's contributions?

So what was a 7 year deferred pension is now worth nothing. Sounds like a great idea.

Good_bad_and_ugly

Are you under the impression that because AFPS is notionally non contributory (pay abated by about 6%), the CETV is zero? Sorry, but your premise is difficult to follow.

jem16

Good_bad_and_ugly wrote: »

Are you under the impression that because AFPS is notionally non contributory (pay abated by about 6%), the CETV is zero? Sorry, but your premise is difficult to follow.

This isn't about a CETV as that only happens with a transfer out to a DC scheme. As the NHS scheme is unfunded you cannot transfer out to a DC scheme.

You said that you could leave the NHS scheme with a refund if less than 2 years service which if you transferred in benefits from the AFPS, you wouldn't have.

However let's assume for a minute that you could have a refund in those circumstances. All you are entitled to, at that point, is a refund of your own contributions minus any relevant tax relief and NI. As you didn't make any, you won't get any back but let's even assume that you get your notional 6% minus tax and NI. Hardly a great return for the loss of 7 years deferred pension.

hyubh

Good_bad_and_ugly wrote: »

You need to read the GAD valuation of AFPS, published two weeks ago. You're asking 'if' they're fragile?! Check out the CIPFA valuation dated 30 March.. a £1.3 trillions shortfall?!

Any quoted 'shortfall' isn't particularly meaningful because there is no pension fund to fall short - the pensions are just paid for out of general taxation. Put another way, any decision to transfer out based on the assumption the AFPS is rationally funded would itself be irrational