Moving deferred pensions to Civil Service pension

Theobalds

HELP! MY HEAD IS GOING AROUND IN CIRCLES.

I am looking to see if transferring a deferred final salary pension and stake holder pension is worth moving to the civil service Alfa pension or not?

In 2018 I joined the Alfa Civil Service Pension Scheme. I am 45 years old.

From my previous employment I have a Deferred Pension from the USS Final Salary Scheme, with a value of £35,000.

I also have a Stakeholder Virgin Pension where It started with a lump sum of £6,000.00 and after 10.50 years with no extra contributions it is worth £10,000.

I have been unable to find advice, as the consultants who could help want to charge me from £4,000 and this does not seem a viable cost wise. I am trying to decide as to whether to transfer either of these to my Civil Service Pension Scheme. (Alfa)

Thank you to anyone who might be able to give me guidance or point me in the direction of someone who can at a reasonable price. (Not expecting advice)


LB

kidmugsy

Theobalds wrote: »

I am looking to see if transferring a deferred final salary pension and stake holder pension is worth moving to the civil service Alfa pension or not?

In 2018 I joined the Alfa Civil Service Pension Scheme. I am 45 years old.

From my previous employment I have a Deferred Pension from the USS Final Salary Scheme, with a value of £35,000.

I also have a Stakeholder Virgin Pension where It started with a lump sum of £6,000.00 and after 10.50 years with no extra contributions it is worth £10,000.

Not advice but stray thoughts.

(i) A combination of a DB pension (e.g. Alpha) and a DC pension can be quite attractive. I understand, however, that the Virgin stakeholder is unusually expensive. Maybe you should add to your list of considerations the idea of transferring it to a different provider rather than to the Alpha pension. (Mind you, I'm so ignorant about the Alpha that I didn't even know it would accept transfers in of DC schemes.)

(ii) I'll assume that Alpha will accept a USS transfer. Four considerations stick out for me. (a) Would it be good value e.g. would it buy a more valuable pension than the one you'd be giving up even if you don't get a pay rise/promotion in future? (b) Do you have reasonable hopes of pay rises and promotions? (c) Are you happy with the financial position of USS? I ask because not too long ago it was in trouble and the management was "in denial". Nettles have been grasped since then but it may be a case of too little too late. And that's even if university bankruptcies don't happen. (d) The important details: retirement ages for the two schemes, inflation-protection, widow's pension, and so on - which is better?

Addition: remember it will be irreversible: once your funds have gone into Alpha they won't be transferable to anywhere else except schemes in the "public sector club". At least that's how it used to be: I suppose you should check that it still is.

Theobalds

Thank you for your comments, Kidmugsy.
I will certainly bear them in mind when I eventually get the forecast quotes from the Civil Service.

I do not know when that will be now as I have now been told they are not issuing quotes for a while because of changes in the last budget.

mgdavid

Theobalds wrote: »

........

From my previous employment I have a Deferred Pension from the USS Final Salary Scheme, with a value of £35,000.
.................

DB (final salary) schemes don't have a value - unless you mean a CETV, but I thought (may be wrong) that transferring in to something like CS Alpha simply buys you extra years of service?
There is also a time limit from joining a new scheme for accepting transfers in, when exactly did you join Alpha?

Theobalds

[FONT=&quot]Thank you mgdavid for your comments. [/FONT]
[FONT=&quot]I have looked at the USS quote and you are right it is called Cash Equivalent Transfer Value. I did not start the ball rolling until I passed my probation period which was 10 months and then it took 2 weeks to officially tell me I had passed. There has been many hiccups between the various pension providers (including the Civil Service) Now I have been told deadlines will be extended due to the changes at the last budget and they are unable to give a projection quote for another 4- 6 weeks. Perhaps, then the quote will explain where the transfer in would be allocated. I am going to read the Hansard for the last budget at the weekend to see if I can make head or tail of it. I have also got to find out if the transfer out values still apply because of the delay.[/FONT]