Requesting a guaranteed CETV

BJL55

Thanks for all the replies.

From the relpies it seams that is quite a common rule.

I have read the scheme rules booklet and can't see any thing mentioned specific for the DB scheme, the rules for the DB scheme have not been updated since 2012 however the rules for the DC were updated last year.

It's now in the hands of my IFA.

BJL55

Here's the companies response:

"When a member chooses to leave active DB membership without immediately retiring, they remain a plan member but these DB benefits are deferred. If they choose not to take a CETV, and choose to remain in employment, they cannot then be “re-instated” as an active DB member.

In order to receive a guaranteed cash equivalent transfer value, a member must have left active DB membership of the plan. If they choose not to accept the CETV, they do not lose all DB benefits, but instead they will receive an annual (paid monthly) DB pension. This is not re-joining the DB plan, as the member never left it. Once a member has started receiving an annual DB pension they cannot then take a CETV."

I still think it's a bit of a penalty as the scheme closed 10 years ago and my salary is a known figure.

sandsy

Are the DB scheme benefits based on your salary at the time the scheme closed or your current salary?

BJL55

sandsy wrote: »

Are the DB scheme benefits based on your salary at the time the scheme closed or your current salary?

Will be based on current salary.

Parking_Trouble

I am an active member of a DB scheme (large bank) and they have given me an indicative figure only.

You have to leave the scheme, become a deferred member to get a guaranteed CETV figure.

Tcquins

For scheme administrators, it isn!!!8217;t possible to to offer a !!!8216;guaranteed CETV!!!!8217; while you are still accruing pension rights. A guarantee last 3 months, however you are still accruing rights unless you are a deferred member of the scheme.

So you can only get an estimated transfer value, and quote of retirement benefits based on you opting out at the end of the month.

Only when you opt out and stop accruing pension rights will you have the right to ask for a guaranteed CETV

BJL55

A quick update.

The guaranteed figure is in, 30K north of the figure I was given last May :-)

Happy days are not to far away :-)