Transfer Final salary questions. 12 May at 12:22PM in Pensions, Annuities & Retirement Planning 29 replies 1.3K views

hyubh

Heisenberg01 said:

Ok, looking at it from another point if view, when someone says"I got a CETV of 30x" 

30x what?

It's a layperson's term that has nothing to do with how the CETV is actually calculated.

Dox

Heisenberg01 said:

Ok, looking at it from another point if view, when someone says"I got a CETV of 30x" 

30x what?

Why not ask them to (ahem) avoid any confusion...?

Heisenberg01

hyubh said:

Heisenberg01 said:

Ok, looking at it from another point if view, when someone says"I got a CETV of 30x" 

30x what?

It's a layperson's term that has nothing to do with how the CETV is actually calculated.

I understand it's a complex calculation based on many different factors, I get it, but can you tell me 30x what?

Heisenberg01

Dox said:

Heisenberg01 said:

Ok, looking at it from another point if view, when someone says"I got a CETV of 30x" 

30x what?

Why not ask them to (ahem) avoid any confusion...?

Ask who?

Look, I've got a CETV being worked on, I'm a curious person and would like to know when the many people say I got 30 X 40x etc what is the factor they use, 30 X what?

xylophone

https://www.thisismoney.co.uk/money/pensions/article-4600554/How-final-salary-pension-transfer-values-calculated.html

JoeCrystal

Heisenberg01 said:

Look, I've got a CETV being worked on, I'm a curious person and would like to know when the many people say I got 30 X 40x etc what is the factor they use, 30 X what?

The factor is based on the annual pension multiples of the CETV itself. For example, if I was in a DB pension scheme and accrued £6,000 pension to be paid by 68 and I requested the CETV from the administrator. They might calculate it based entirely on their own rules and factors in which no scheme is precisely the same. It might be £90,000, which is 15 x the annual pension or £180,000, which is 30 x the annual pension.

I hope this makes sense now. 

Dox

Heisenberg01 said:

Dox said:

Heisenberg01 said:

Ok, looking at it from another point if view, when someone says"I got a CETV of 30x" 

30x what?

Why not ask them to (ahem) avoid any confusion...?

Ask who?

Look, I've got a CETV being worked on, I'm a curious person and would like to know when the many people say I got 30 X 40x etc what is the factor they use, 30 X what?

Your colleagues, which is where you got this figure from, according to your first post: I work for a well knownish UK company who froze the pension scheme at the end of last year, many people have allready transfered or are in the process of doing so, due to the generous enhanced value, (between 30-40x) no idea why the values  vary, the younger guys seem to be getting the higher amounts.

Otherwise who knows what people think they are basing their 30x mutiple on? Simple arithmetic seems beyond a lot of them...

Heisenberg01

Dox said:

Heisenberg01 said:

Dox said:

Heisenberg01 said:

Ok, looking at it from another point if view, when someone says"I got a CETV of 30x" 

30x what?

Why not ask them to (ahem) avoid any confusion...?

Ask who?

Look, I've got a CETV being worked on, I'm a curious person and would like to know when the many people say I got 30 X 40x etc what is the factor they use, 30 X what?

Your colleagues, which is where you got this figure from, according to your first post: I work for a well knownish UK company who froze the pension scheme at the end of last year, many people have allready transfered or are in the process of doing so, due to the generous enhanced value, (between 30-40x) no idea why the values  vary, the younger guys seem to be getting the higher amounts.

Otherwise who knows what people think they are basing their 30x mutiple on? Simple arithmetic seems beyond a lot of them...

I was also referring to the multitude of posts on here where people refer to a figure of 30x 40x, looks like a post above yours answered the question, ie deferred pension.

Heisenberg01

JoeCrystal said:

Heisenberg01 said:

Look, I've got a CETV being worked on, I'm a curious person and would like to know when the many people say I got 30 X 40x etc what is the factor they use, 30 X what?

The factor is based on the annual pension multiples of the CETV itself. For example, if I was in a DB pension scheme and accrued £6,000 pension to be paid by 68 and I requested the CETV from the administrator. They might calculate it based entirely on their own rules and factors in which no scheme is precisely the same. It might be £90,000, which is 15 x the annual pension or £180,000, which is 30 x the annual pension.

I hope this makes sense now. 

Yes, makes sense,maybe I didn't word the question correctly, I wasn't asking how they come up with the amounts they do, but what figure is used in the calculation, the accrued amount when I left the pension, (16k) or the projected at 67 if I had stayed in the scheme.
Thanks