civil service pension - alpha transfer in

marlot

I don't know the fomula for the transfer in, but be prepared for MyCSP to be completely incompetent.

They mucked up my transfer in multiple times, and it ended up taking about 15 months.

They have a limit of 12 months on inward transfers, but do have the discretion to vary that when its their fault.

droiderm

Thanks for the comments everyone.
I don't think I can transfer part of the pot and it is dc. I was only asked for the scheme details, not for how much I want to transfer so I assume it's all or nothing.
Taking that pot now and buying an annuity today, would result in a way worse income. I know it's not as simple as that, as the pot would grow. It just feels like a good deal
With the obvious negative being state retirement age. But, I don't think the pot would give me much flexibility in retiring too much earlier. I know with alpha I can pay to retire early up to three years.

Assuming I stay in alpha with the accrual rate of 2.32 for 20 years , that's about 46 % of my average pensionable salary. That doesn't seem so bad?

I am pretty sure I am going to transfer, just feels it's good to know what I will get.

OldBeanz

I am no genius with figures but the deal certainly appears attractive. You could always start another PP or SIPP which would give you some flexibility. Believe me as you enter your late 50's your acceptance of BS fades greatly. £50pcm would give you a nice bonus at the end.

Andy_L

Pros:
Certainty of pension amount

Cons:
Loss of capital, you can't use the new pension freedoms to extract more lump sum.

Legislation risk, retirement age will track state pension age and you have the risk of another rpi/cpi index switch

PensionTech

Loss of capital, you can't use the new pension freedoms to extract more lump sum.

Legislation risk

I'd argue that legislation risk applies to DC pots too - the freedoms have not been welcomed by all and there is a reasonable possibility that some restrictions will be re-introduced if consumers don't seem to be acting appropriately. I believe Australia has been leaning that way in recent years.

kidmugsy

droiderm wrote: »

"it will buy you an index linked pension with a pension age linked to the state pension age".

I hate evasions such as "linked to the state pension age". What are they trying to hide? Why haven't they said "equal to your state pension age"?