DC with a GMP underpin

[Deleted User]

As I am getting my DC pensions in order for my retirement, at 55, next year, I have one oddity.
It is a DC Pension with a GMP underpin (that is how the pension company have described it)

I was employed between 1987 and 1997
The DC pot is £174,892.45 it offers no drawdown

There is a GMP underpin which states

Post 5.4.1988 GMP at Date of Exit £786.76
Total GMP at Date of Exit £846.56
Deferred RST Pension at Date of Exit £229.86
Total GMP at State Pension Age £5,544.24

The contributions were

You Former Protected Rights £11,924.22
Your Employer Former Protected Rights £23,848.44
You Core £2,500.70
Your Employer Core £5,001.40
You Additional Voluntary Contributions £3,579.94
Your EmployerSpecial £600.00

I think I understand this.. ie if I leave it alone I get the GMP as a minimum but I wish to consolidate this DC pension with my others
Is this classified as one of those DB Benefit transfer for which I have to pay a lot of IFA money or is it a simple transfer?
Many thanks

AnotherJoe

AIUI anything that's got a guarantee needs an IFA

xylophone

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

[Deleted User]

For info - talked to my IFA (I just posted here for a heads up) and when you get an answer its always good to update a thread
This is more difficult than a normal DC transfer and the charge will be approx 1-2% of the fund above. ie nothing like £30k more like £3k. This is around twice the cost of a normal DC into the IFA portfolio.
The money is taken after the tax free cash has been paid to minimise the effect on cash in bank.
(I have particular requirements where I need to take my tax free cash - ie moving to Spain)

xylophone

This is more difficult than a normal DC transfer and the charge will be approx 1-2% of the fund above. ie nothing like £30k more like £3k.

I am not sure what you mean by this.

Has some confusion arisen with respect to the requirement for advice where the value of the "safeguarded benefits" is greater than £30,000?

See https://adviser.royallondon.com/technical-central/pensions/transfers/safeguarded-benefits/

xylophone

And have you obtained a State Pension Forecast?

https://www.gov.uk/check-state-pension

Is a COPE mentioned?

[Deleted User]

xylophone wrote: »

I am not sure what you mean by this.

Has some confusion arisen with respect to the requirement for advice where the value of the "safeguarded benefits" is greater than £30,000?

See https://adviser.royallondon.com/technical-central/pensions/transfers/safeguarded-benefits/

I meant some of the quotes I have seen on this forum are extravagant

[Deleted User]

xylophone wrote: »

And have you obtained a State Pension Forecast?

https://www.gov.uk/check-state-pension

Is a COPE mentioned?

Yes I have
I have £8,950 pa
I have a COPE at £40 per week but I did the calculations as I was unsure why I was so high with my forecast (and I have all my years and cannot increase it anymore)
I found an old statement from 2003 or so which mentioned how much much my second state pension was.. around £66 per week at the time.
The numbers crunched using the formula somebody posted and they work out okay. So I am a winner I think.
I have written to the NISPP or something like that to verify I haven’t got another pension somewhere, they will send me the dates I was contracted out so I can check

xylophone

I have a COPE at £40 per week but I did the calculations as I was unsure why I was so high with my forecast

As well as some years contracted out, you seem to have a number of years contracted in during which time you would have accrued SERP/S2P (Additional State Pension).

Therefore as at 6/4/16

NI years/30 X £119.30 + ( ASP - deduction for contracting out)

NI years/35 X £155.65 - COPE

Your starting amount was the higher of the two.

Your ASP has more than covered the deduction so that your state pension will be higher than a full NSP.

The amount up to NSP will increase annually under the "triple lock" (at the moment) formula and the balance by (at the moment) CPI.