Final Salary Scheme

Wolf52

Sorry do you mean what the annual pension will be?

And thank you to everyone who replied on my behalf - I'm not transferring out of my NHS pension, just my old DB pension.

JillyC8

Hi, yes what the annual pension would be...

Wolf52

JillyC8 wrote: »

Hi, yes what the annual pension would be...

£4k per annum.

Wolf52

Hello everyone, I am once again attempting to cash out my old private company DB pension. I have found an IFA who specialises in these matters, and he has applied for my CETV which has come back at £207k - this is some £40k higher than previous quote. Our circumstances haven't changed much, except there may be a recurrence of hubby's brain tumour - we are waiting on hospital for results/next steps.

Will keep you posted.

Albermarle

Hopefully the hospital results are positive .
A CETV of £207K for a £4K pa pension seems very very high .
Can you say where this £4K figure is obtained from ?
When you left your ex employer you should have received a statement at that time with a pension amount . Did that say £4K p a ?
Normally the figure increases by inflation so could be higher by now ? How many years since you left the company ?

Wolf52

Thank you Albemarle - we hope so too.

With regard to the figures, the statement received states: "Member's pension at Date of Leaving £4453.68; CETV being £207074.12".

From that, I took that my annual pension would be the £4k figure - am I reading this wrong? The company closed their DB pension scheme in April 2010, I left some four months later.

Thanks.

JoeCrystal

Wolf52 wrote: »

Thank you Albemarle - we hope so too.

With regard to the figures, the statement received states: "Member's pension at Date of Leaving £4453.68; CETV being £207074.12".

From that, I took that my annual pension would be the £4k figure - am I reading this wrong? The company closed their DB pension scheme in April 2010, I left some four months later.

Thanks.

Considering that you left nine years ago, it is more than likely that it will be index-linked (If it is by CPI, it would be worth £5,608.79 by now), do you know how it will get index-linked while deferred? It might be worth having a look at the scheme booklet about it.

Wolf52

JoeCrystal wrote: »

Considering that you left nine years ago, it is more than likely that it will be index-linked (If it is by CPI, it would be worth £7,362 by now), do you know how it will get index-linked while deferred? It might be worth having a look at the scheme booklet about it and request a new CETV. If that CETV figure is from 2000, it is woefully out of date.

Hello JoeCrystal - these are the figures as of 19 August - I don't know anything about linking to CPI - I'll ask my IFA about this thanks.

mgdavid

Wolf52 wrote: »

Hello JoeCrystal - these are the figures as of 19 August - I don't know anything about linking to CPI - I'll ask my IFA about this thanks.

Sorry to be blunt but YOU need to acquire a copy of the Scheme Rules and read it. It's not rocket science (and frankly I'd be ashamed if I had to ask an IFA to do this for me). Phone the scheme administrators, or look online. You need to know ALL about your valuable DB pension before making any decision, or even getting ideas about what to do.

Albermarle

With regard to the figures, the statement received states: "Member's pension at Date of Leaving £4453.68; CETV being £207074.12".

For example for my DB pension , I left the employer many years ago ( but not taking the pension yet) and I received a letter saying as of my date of leaving I was entitled to a pension of £5500 pa at the retirement age of 65 . The letter also said that the pension would increase by inflation each year . So after say 10 years the pension would then be worth £5,500 pa + inflation for 10 years but they never send me a new updated figure .( you can calculate it your self if you know how to )

What you will most likely find is that comparing the £4Kpa vs the CETV of £207,000 is very misleading ( which is why I said in my original post that it didn't look right ) .
The £4Kpa is probably now maybe £6Kpa .

Normally it is better to keep the DB pension despite the eye watering CETV on offer .
However considering your husbands illness it might be better to think about taking it . I would see the IFA asap to investigate taking the CETV in the circumstances.