Transferring out of DB Pension

Albermarle

I have been offered a £130k lump-sum with a £19.2k pension, which I think equates to a commutation factor of 22.5 or so.

The lump sum will be tax free, so that is a factor .

I wouldn’t transfer for that value and would have expected it to have been a bit higher .

Each scheme has its own calculations , so you can not 'expect' any particular value .
You get given a CETV and then decide what to do about it .

Marcon

Roborovski wrote: »

The scheme is only 60% funded (according to last actuarial valuation, 2015) and the company itself may well be declared insolvent by its American parent. Question is, would I be better transferring out of the DB scheme (transfer value £720k).

If the last valuation was in 2015, the next triennial valuation was due during 2018 and (normally) needs to be signed off within 15 months of the valuation date - so there should be an update available now, or very soon.

If the scheme was only 60% funded in 2015, is there any indication on the paperwork you've received that 'reduced' transfer values are currently being offered to members?

Roborovski

I have not seen any statement that "reduced" transfer values are being used