Another CETV Q; Help Me Thrash It Through...

Silvertabby

cloud_dog wrote: »

Ok so Capita have been quite efficient and I have received the (not guaranteed) CETV. There are three numbers:

1. Total DB Transfer Value
2. Pre April 1997 Transfer Value Arising from GMP
3. Post April 1997 Transfer Value From Post Contracted Out Services

I assume I total these three together to obtain the CETV (not guaranteed) number? In which case with the number is just over £760k and works out (based on the updated members pension at DoL) as fractionally over 28 times.

Time to play the numbers.

Er, not necessarily - unless Capita are doing something very odd, I would say that the total DB transfer value is .... the total DB transfer value.

Does 2 + 3 = 1?

happyandcontented

Yes, that is what I would have assumed too.

cloud_dog

Silvertabby wrote: »

Does 2 + 3 = 1?

No.

1 = £467k
2 = £67k
3 = £226k

Using the pension at DoL (£27k) and 1 (£467k) gives a ratio of 17; which would make me very sad

EDIT: So, it is really not clear to me if 1 is the total and 2 and 3 are contained within or if the total is the sum of the 3 (wishing).

cloud_dog

If 1 is the CETV (not guaranteed) then it certainly makes my choice simply and very easy.

happyandcontented

I would read that as 1 is the total of all elements.

Our IFA told us this week that CETV values are now dropping, so that could be what is going on here. Or they have decided not to enhance the figures as was common recently.

Silvertabby

cloud_dog wrote: »

No.

1 = £467k
2 = £67k
3 = £226k

Using the pension at DoL (£27k) and 1 (£467k) gives a ratio of 17; which would make me very sad

EDIT: So, it is really not clear to me if 1 is the total and 2 and 3 are contained within or if the total is the sum of the 3 (wishing).

I would still say that just 1 is your total transfer value. You're not looking at £27K as the pension you would have received if you had carried on working/paying contributions to State pension age, are you?

cloud_dog

Silvertabby wrote: »

I would still say that just 1 is your total transfer value. You're not looking at £27K as the pension you would have received if you had carried on working/paying contributions to State pension age, are you?

No.

Current pension at NRA is £33k. 27K is the pension accrued at the DoL (which is approx £400 more than the statement from last year so this makes sense(increase in accrual).

cloud_dog

I'll contact Capita on Monday just to confirm that 1 is the number. If the CETV is 1, then my decision is made and I need to earnestly look at the best options for building flexibility in to our situation going forward.

Have requested that Capita confirm in writing the understanding that my AVCs can be transferred out if I were to leave the company's employment before my NRA and, importantly, that the main DB scheme benefits would remain intact and can be taken in line with scheme rules at my NRA.

If Capita confirm, then I will:

a) look to increase the amount of my AVC (due to the additional benefits of SS), or if not I will,

b) cease my AVCs and open a SIPP and direct the monies in to the SIPP.

jamesd

Yes, you're going to have to confirm with Capita. 1 alone looks too low to be a credible full transfer value. The three piece split makes sense, differentiating between each component. 1 would be main scheme, 2 from contracting out and 3 different rules. So add the three is what I expect you'll be told.

cloud_dog

jamesd wrote: »

Yes, you're going to have to confirm with Capita. 1 alone looks too low to be a credible full transfer value. The three piece split makes sense, differentiating between each component. 1 would be main scheme, 2 from contracting out and 3 different rules. So add the three is what I expect you'll be told.

Hi

It will be interesting to confirm. If it is the larger number, sum of 1 through 3, then it will make for interesting decisions. It will also be a badly laid out document.