impossible to find FA for DB transfer

iro

No idea what 'Sir Nige' has to do with this?

Of course you have no idea what transfer value I received or how generous it was relative to the actual pension.

Everyone is entitled to their view on this but it does appear that some believe that it is never right to transfer at any price. Even if you were offered a 100x or a 1000x? I was pleased to have done it and I have no complaints about the IFA, who in their fee were probably reflecting the risks (indemnity insurance), the need for qualifications and the time spent preparing the report.

If Gilt yields rise and additional liquidity is injected by existing annuity holders being able to reverse them (the original plan to HMG lost its nerve) I have no problem with purchasing one probably at better terms than the value I have given up.

The key factor?

THE PRICE! (not some categorical imperative 'never').

AlanP_2

iro wrote: »

No idea what 'Sir Nige' has to do with this?

Of course you have no idea what transfer value I received or how generous it was relative to the actual pension.

Everyone is entitled to their view on this but it does appear that some believe that it is never right to transfer at any price. Even if you were offered a 100x or a 1000x? I was pleased to have done it and I have no complaints about the IFA, who in their fee were probably reflecting the risks (indemnity insurance), the need for qualifications and the time spent preparing the report.

If Gilt yields rise and additional liquidity is injected by existing annuity holders being able to reverse them (the original plan to HMG lost its nerve) I have no problem with purchasing one probably at better terms than the value I have given up.

The key factor?

THE PRICE! (not some categorical imperative 'never').

Farage was referenced, I assume, as he will be getting a very nice "public sector" pension when he becomes an ex-MEP. If he took the CETV (assuming it is possible with his Scheme) the taxpayer would likely save a lot of money (dependent on how long he lives).

Same applies to your transfer from the LGPS, for which the CETV calculation is calculated by a totally different set of rules & guidelines than a private sector scheme. The end result of LGPS calculations is a very low CETV compared to the annual pension foregone, so as Hyubh says, your neighbours would be very pleased.

hyubh

iro wrote: »

Of course you have no idea what transfer value I received

http://www.lgpsregs.org/schemeregs/actguidance.php

Scroll down and open up 'Transfers - individual incoming and outgoing'. See in particular the link for factors:

http://lgpslibrary.org/assets/actgui/ew/TransfersF20170309.pdf

These factors ultimately depend not on gilts, but a CPI-based discount rate ('SCAPE') that the government uses to notionally cost the unfunded public sector schemes:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508105/Basis_for_setting_the_discount_rate_for_calculating_cash_equivalent_transfer_values_payable_from_the_public_service_pension_schemes.pdf

Use of SCAPE to value public sector pensions is not uncontentious, as it makes the cost come out much lower than if they were valued in the same way a private sector scheme's liabilities are in its sponsoring employer's accounts. Admittedly use of SCAPE for LGPS CETVs specifically isn't particularly contentious, though part of that is probably the fact it is keeping LGPS CETVs down compared to CETVs in the private sector.

Everyone is entitled to their view on this but it does appear that some believe that it is never right to transfer at any price.

You're in the LGPS, so it won't be at 'any' price in the slightest. Use of SCAPE is a bit of an anomaly (it isn't used for anything else in the LGPS, and isn't used by private sector schemes), but that's just how things stand.

If Gilt yields rise and additional liquidity is injected by existing annuity holders being able to reverse them (the original plan to HMG lost its nerve) I have no problem with purchasing one probably at better terms than the value I have given up.

I hope you don't really think that (i.e. you are transferring out because you really, really want the extra flexibility, not on a belief of being able to get something like the benefits forgone if you changed your mind). Your chances of being able to purchase an annuity anywhere near the LGPS benefits forgone is highly, highly unlikely.

The key factor?

THE PRICE!

Insofar as price is indeed the 'key' factor, LGPS CETVs aren't worth it.

[Deleted User]

Hello hyubh,
My spouse has taken CETV from LGPS. By doing so she is able to retire now ,rather than in 6 yrs time, when she would receive her state pension. The LGPS pension at that time, would need to be paid for over 25years to cover the CETV.
It enables us to enjoy retirement together for longer. Certainly worth it for us.
Regards
Billy

iro

LGPS????

My scheme was with a bank which is in the 'private sector' so not RBS.

soulsaver

iro wrote: »

3% of the cetv but that is the best price I could find, has anyone done it cheaper?.

FWIW I paid 0.7% this time last year...

hyubh

iro wrote: »

LGPS????

My scheme was with a bank which is in the 'private sector' so not RBS.

Urgh, confused you with the original poster. Although, by the same token, why did you post to this thread in the first place if you weren't...

iro

title of thread;

'impossible to find FA for DB transfer'

I have/had a DB scheme

Anything else I can help you with?

pip895

I couldn't find anything below 1% when I looked a few months back on a ~500k cetv.

iro

That is a good rate sadly I did not find that one. One IFA quoted me 7% and a number wanted a fee up front

My feeling was that a sizeable reward encouraged the IFA to complete the process within the 3 month period.