Old Plan with DB and DC/MPP - restricted options?

xylophone

I have to say that I am at a loss to understand what is going on here.

Was the only benefit to you in moving your MPP to "Citigroup" that of having the same administrator for both?

You were not able to transfer into the DB Scheme and the MPP money cannot eventually be used to buy added years or any other benefits within the DB Scheme?

There are no guaranteed rates/bonuses attaching to the MPP Scheme?

I hope you'll let us know the answer......

xylophone

I still have an untouched AVC, originally associated with a DB pension that I have been drawing for several years. Do I have a statutory right to transfer that AVC?

http://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/workplace-pension-schemes/defined-contribution-avcs-and-fsavcs

AVC or FSAVC?

sandsy

adspence wrote: »

They've kept saying the same thing with no evidence or back-up other than "our trustees don't allow them to be split".

Ask them for a copy of the scheme rules?

kidmugsy

xylophone wrote: »

http://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/workplace-pension-schemes/defined-contribution-avcs-and-fsavcs

AVC or FSAVC?

A defined contribution AVC scheme.

adspence

xylophone wrote: »

Was the only benefit to you in moving your MPP to "Citigroup" that of having the same administrator for both?

I'm not sure why I did it now. At the time (in 1990) it wasn't much money, so probably thought it best to keep things together. With my subsequent employment changes I left the funds in place - though I'm reviewing/rebalancing/consolidating them where necessary in the run up to retirement (maybe 5yrs if I'm lucky).

xylophone wrote: »

You were not able to transfer into the DB Scheme and the MPP money cannot eventually be used to buy added years or any other benefits within the DB Scheme?

Right, there is no indication that the MPP can buy extra years or benefits in the DB part. It is simply a pot allocated to 3 funds. It was 4. I've only had transparency into what they were recently (my bad I guess for not asking 20 years ago) so moved the small amount of money out of the ridiculous default allocation they had in Cash where the charge %age was way higher than the return.

xylophone wrote: »

There are no guaranteed rates/bonuses attaching to the MPP Scheme?

Correct, nothing in the yearly summary indicates there are any special rates/bonuses.

xylophone wrote: »

I hope you'll let us know the answer......

Absolutely, provided TW finally tell me why they are linked. Maybe 3rd time asking them will be a charm.

If only I'd taken more notice of my pensions in my 20's and 30's. I only recently realised that I even had a DB entitlement. I thought I'd missed the boat there when I joined the company back, but I'd just sneaked in before they stopped offering it. The nice thing is that the DB piece and the State Pension would mostly cover essential expenditure (need to fund 55-67 of course) so I'm loathe to move out of the plan simply to get the MPP cash, but it is still something I'd like to get if it is my right to do so.

xylophone

A defined contribution AVC scheme.

It would then seem possible to transfer out - have you checked your situation with the administrator?

kidmugsy

xylophone wrote: »

It would then seem possible to transfer out - have you checked your situation with the administrator?

I phoned the Pru; "yes" said the laddie, "I'll just post you the forms".

I phoned again the next day, just to check that there would be no charge. "No, you can't do it" said the lassie, "you'll have to take it up with the Trustees of your [DB] scheme".

To whom do you think I should write? Would an e-mail be suitable, or should it be on paper?

xylophone

http://www.pru.co.uk/existing_customers/products/avcs/

http://www.pruadviser.co.uk/content/knowledge/oracle_archive/oracle-technical/oracle-tech-july-14/freedom_and_choice/

Is there anything in the above to clarify?


It seems to me that if you were not required to take your AVC benefits with your main scheme pension, then what you have is the equivalent of a DC pension?

Do you still have your scheme booklet and details of the AVC - if so, have a read.

Is there any element of safeguarded benefits in the AVC scheme? How was it linked with the main scheme?

Did the original AVC contract require you to buy an annuity with the funds?

Then as an initial step, telephone the Administrator of the DB scheme, and enquire whether there is anything in Scheme rules to prevent a transfer out of the AVC.

kidmugsy

xylophone wrote: »

It seems to me that if you were not required to take your AVC benefits with your main scheme pension, then what you have is the equivalent of a DC pension?

That's what I want it to be, but the Pru seems disinclined to agree.

xylophone wrote: »

Is there any element of safeguarded benefits in the AVC scheme?

I'm unfamiliar with the expression, but I don't recognise anything odd about the AVC. Pru have offered me the chance to use it to buy an annuity from them, but I'm not interested at the moment.

xylophone wrote: »

How was it linked with the main scheme?

When I retired its value could have been added to my DB, so giving me a larger pension and lump sum. I opted not to do that.

xylophone

Is there a guaranteed annuity rate attached to the annuity?

http://www.pru.co.uk/pdf/AVCK0433.pdf Relates to a particular Scheme but may be of interest.