TDG Pension Scheme changes

jamesd

Yes, deferring the state pension would probably be beneficial and the time of deferring will often be the best time to take the money out of the pension because some or all of the income tax personal allowance maybe available, cutting the amount that has 20% income tax paid on it.

downshifted

He will be 65 in August 2016 so the deferral of State Pension is not so advantageous as at present?

xylophone

See https://www.gov.uk/deferring-state-pension/what-you-may-get

jamesd

Not as advantageous as at present but 5.8% inflation-linked for life is still quite a good deal.

downshifted

That's a fair point, we will have a think about it. Thanks to all for being so helpful. We have emailed the scheme admin for some further info on what may be possible and I will update idc

downshifted

Latest info from the TDG scheme:

[FONT=&quot]Thank you for your email.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]In response to your questions:[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]1. [/FONT][FONT=&quot]Once your DC benefits have been transferred to Scottish Widows, further flexible options will be available to you, unfortunately we are not in a position to give you details on these but I can refer you to the Scottish Widows website for further information. You will find this at http://www.scottishwidows.co.uk/tdg[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]2. [/FONT][FONT=&quot]I can confirm that with regard to transfer values requested after April 2015, you are permitted to transfer DB funds amounting to less than £30 000 without receiving financial advice, as per Government rules.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I trust I have answered your queries, but please contact us should you require anything further.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Kind regards,[/FONT]

[FONT=&quot][/FONT]

I now plan to speak to Scottish Widows (as the link provides no useful info for our purposes) and HL and Virgin money


[FONT=&quot][/FONT]
[FONT=&quot]
[/FONT]

mgdavid

as you say in your OP, Charles Stanley do a SIPP; I have one, it's easy to use.

downshifted

Update:

We are still struggling with the transfer to a Hargreaves Lansdown Sipp from the DC element of the TDG pension plan - we sent all the forms to HL but they appear to have lost one of them and we have had to obtain and send duplicates.

As for the DB and AVC element, on the advice of the Pensions Advisory Service we have asked if they will allow him to give up the entire DB benefit and AVCs in the TDG scheme as a ‘one-off’ lump sum under the small pots rule. A small pots rule is where the value of the benefit is no more than £10,000. If not we will try to transfer out, but they insist on this being done before he is 64, which is in August so they may end up paying his pension of £90pa.

By contrast, he has a small (£4k) AVC pot in the Booker pension scheme which he is also transferring to HL - the administrators of this scheme have been helpful and efficient while at the same time carrying out their duty of care by also sending information about pension scams etc - all praise for JLT Benefit Solutions.

I have to say there is a lot of admin and chasing around to ensure these new freedoms happen - for example HL intially wrote to us refusing to accept the transfer in as we had not had independent financial advice. I phoned up to say that the pot was less than £30k (considerably less) and they said oh, ok then, it's just that we have to send out that letter first. Many people might have taken that letter at face value..... it all seems far more complex than necessary

xylophone

I was surprised to hear that all has not gone smoothly with the HL transfer - they are normally very efficient and knowledgeable.

http://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/the-right-choice-for-me/taking-a-small-pension-as-a-cash-lump-sum

Small pot certainly seems to be an option but he might prefer to get the pensions under one roof so to speak and manage as is most advantageous to him in terms of taxation?

Has he obtained a new state pension statement?

https://www.gov.uk/state-pension-statement

downshifted

Yes he has a state pension statement. I've been surprised at HL too..... they sound very helpful (in a charming young public schoolboy kind of way) but they didn't send the right forms on (they were not standard because of the way this move came about, see first post). I'm waiting to see how the second, more straightforward transfer in goes.