Gmp

xylophone

Ask the scheme administrator about benefits at 65 to enable you to consider whether a transfer out would be the better option in your husband's case.

Don't forget that only 25% of the pension would be tax free with the rest taxed as income in the year of receipt.

Have you looked at the link in my post above?

If you need an IFA, you might want to ring round a few to gauge fees.

https://www.unbiased.co.uk/

agarnett

Did you catch worn out's thread and particularly post #9, OP?

It is not directly similar, because worn out's was only once upon a time a defined benefit entitlement - one that got converted (bought out) as a Section 32 bond with Aviva many years ago, but the lesson to be learned may be the similar, because the GMP element got transferred more or less intact.

Because of the largesse of the GMP element of worn out's pension promise, the actual pension he or she will receive is worth far more than the cash value of the fund could ever purchase as an annuity.

I think in worn out's case the cash value was £62K all told (ignore the talk of bonuses - it is the full transfer value of £62K that makes my point), but the pension worn out may expect by leaving it where it is has been established worth the same as one costing around £140,000 on the open market today!

Your husband's is less than £30,000 you think, but it may be worth more than double that in terms of the promise it contains, if you can afford to let it pay a pension from the date originally intended ... only the experts can really tell and try to find one that isn't going to see you coming when dreaming up a fee, but good luck!

Alternatively the good people on the forum may be able to help you further if you care to give more detail. Perhaps you have not actually received a formal transfer quotation yet? Normally they do tell you how much the GMP portion is within the transfer value as I think xylophone was hoping you could recall ...

catlover1970

We only have been given the monthly/annual amount of the payment

I think I will book an appt with a local adviser to find out if we can apply for a transfer amount without it effecting his right to claim a pension instead of a lump sum.

hyubh

catlover1970 wrote: »

We only have been given the monthly/annual amount of the payment

What was the 'pot' figure you referred to before?

catlover1970

Hi, yes it was the pot figure, we had the monthly/annual figure in writing and the provider gave us a pot figure overthe phone, thanks

xylophone

There is no " pot" in a DB pension - do you mean that they have given you the "Cash Equivalent Transfer Value"?

catlover1970

That must have been why she meant... If we request a transfer amount are we held to a transfer or can we leave it be

catlover1970

Is there a formula to work out a rough cetv ourselves

xylophone

Is there a formula to work out a rough cetv ourselves

This is a calculation done by the scheme actuary.

http://www.finalsalarytransfer.com/PDF/Tideway_Guide_to_Final_Salary_Pension_Transfers.pdf

The above might be worth a read for general information.

agarnett

Thanks xylophone - you always seem to be able to link to the most topical documents !

It's a November 2014, document but I note there's nothing in it about GMP (at least not that a quick word search for 'GMP' or 'Guaranteed' reveals).

Nevertheless I anticipate it's a good read for anyone who needs a general grounding in how to start considering if a Cash Equivalent Transfer Value might be worth taking (e.g. transfer to a SIPP for new drawdown options) instead of letting the original DB pension do its originally intended job.