Requesting a guaranteed CETV

BJL55

If I request a guaranteed CETV I've been advised that I will have to leave the DB scheme which closed to new members 10years ago, this was replaced by a DC scheme which I will also have to leave, both are with the same employer who I still work for.

In the event that the CETV is significantly different from the quote received in November and I decide to continue working I have given up any future increase in the DB scheme via salary increase over a 36month calculating period. I can however rejoin the DC scheme.

Is this normal practice?

molerat

Not heard of that one before but they can charge you the cost of preparing another CETV quote which may run to several hundred £.

AnotherJoe

It doesn!!!8217;t sound right to me..

xylophone

In the event that the CETV is significantly different from the quote received in November and I decide to continue working I have given up any future increase in the DB scheme via salary increase over a 36month calculating period. I can however rejoin the DC scheme.

Are you sure of this? It really sounds very strange.... an alteration to your pension just for making an enquiry?

It isn't just a case of making a charge if you want more than one CETV per year?

BJL55

Many thanks for your replies.

I asked the question to the scheme secretary and she gave me a direct answer.
I know if I request an additional quote within a calendar year it will cost me £200 but to lose pension rights by asking for a gauranteed quote seam questionable to me.

I will have to make further enquires with the trustees.

mgdavid

Just obtain a copy of the Scheme Rules (which you are entitled to) - and read them.

squirrelpie

I was quite surprised when I took early retirement that I couldn't get a transfer value whilst I was an active member of the scheme (i.e. employed). In order to get a transfer value, I would have had to leave without retiring and so become a deferred member. But if I did that and then didn't want to transfer out, I would have got worse terms when I did take up the pension. I don't know whether the rules of my scheme were a hangover from some previous legal background, or whether they were set up to discourage people from transferring out (and thereby losing the benefits of the DB scheme). I was quite annoyed at the time that I couldn't even check, but I suspect the DB pension is a better option, so I've accepted it now. But yes, there are schemes with funny rules about getting transfer values.

cloud_dog

This is going to be interesting because I have requested a CETV from the scheme administrators (Capita), as I want to do exactly this; understand the potential value so I can weight up the pros and cons before deciding.

So if this is common practice I may not be able to follow through with my review plans.

cloud_dog

Oh poo. Did a quick search and found this:

*NOTE: You must have left your scheme and no longer be an active member for this to apply. If you are still an active member then the guaranteed transfer value will not apply.

Silvertabby

Perfectly normal.

The value of a DB pension varies from day to day - change in final pensionable pay, length of service, etc.

The scheme may give you an estimated CETV up to the day you requested it, but they will only give you a guarantee once you have left the scheme, and your confirmed final pay and service details have been checked and input to your record.

xylophone

The scheme may give you an estimated CETV

https://shropshire.gov.uk/committee-services/documents/s10719/6.%20Comms%20and%20Safeguarding%20Appendix%20A%20C%20%20ETV%20Request.pdf

If you wish to request a Cash Equivalent Transfer Value (CETV) of your pension savings in the
Local Government Pension Scheme (LGPS) and you are currently paying into the LGPS, we will
work out an estimated CETV and send it to you when you have completed, signed and returned the CETV Request Form. We would normally do this within 3 months of receipt of the form

If you are an ‘active member’ of the LGPS i.e. currently paying into the LGPS, we cannot pay a
CETV of your LGPS benefits...

But it doesn't say that just requesting a CETV will have the effect of reducing benefits....