Small BT Pension

Fly100

Hello all,
I wonder if you could help advise me Im a 49 year old man and I have a small BT Pension ( 8 years employment ), from the early 90's. Its been sat with BT and doing quite well. However BT pensions are going through some changes ( and a number of Court cases) and they are offering some decent transfer out values. Its current sat at £75K ( mid Covid Crisis), this would give me a pension of £2600 annually  on a DB scheme index linked. Pre Covid it was sat at around £83k, of course i understand the situation we are all in and that explains the decrease. However, Im considering moving into a SIPP possible the Vanguard Scheme.I feel this pot should give me more than that, and maybe its time I moved it on to somewhere more controllable.
Be interested to hear your thoughts.
FLY

Marcon

You'll need to take advice from an IFA with the necessary 'permissions' to advise on pension transfers, so why not start there. No point anyone here speculating with so little to go on. Masses of other threads on this forum about transferring out of DB schemes, so perhaps read some of those for general comments? Incidentally, Covid19 doesn't necessarily 'explain the decrease'.

hyubh

Can I just check I get this right... you want to transfer out because the CETV has fallen...? Your future pension income as it stands is guaranteed by the government...

Fly100

hyubh said:

Can I just check I get this right... you want to transfer out because the CETV has fallen...? Your future pension income as it stands is guaranteed by the government...

No not at all, I was looking into the annual value when I draw on it. I had spoken to an IFA and it was his advice was they are offering high transfer out values. However any further advice was at 5% of the pot.Hence me asking on here for further info and points of intrest before I commit to any monies.

Added the above BT are wanting to take £13 billion out of the pot for future investment into the Network.The Courts have rules against this.There is alot of discussion this Pension might not be as good in the future.

wjr4

Ignore the CETV unless you are planning to transfer out. This has not fallen ‘due to covid’ as it is not invested in the same way as a personal pension. I’ve reviewed BT pensions in the past and the transfer values are a lot less generous than other schemes. 

tigerspill

Fly100 said:

hyubh said:

Can I just check I get this right... you want to transfer out because the CETV has fallen...? Your future pension income as it stands is guaranteed by the government...

No not at all, I was looking into the annual value when I draw on it. I had spoken to an IFA and it was his advice was they are offering high transfer out values. However any further advice was at 5% of the pot.Hence me asking on here for further info and points of intrest before I commit to any monies.

Added the above BT are wanting to take £13 billion out of the pot for future investment into the Network.The Courts have rules against this.There is alot of discussion this Pension might not be as good in the future.

Where are you reading that BT want to take money out of the pension fund?  My undersranding is the reverse, and that they have commitments to increase the funding to the pension in the coming years (and they have in the past years) to reduce the deficit.
Also I dont believe they can change your accrued benefits.  Where are you reading the benefits may change in future?

solar_power

I am receiving my BT DB pension. BT cannot take any money from BTPS, they have to put in, also the BTPS is covered by the Crown Guarantee, and so is as safe as anything there is. Don't forget the spouse benefits after your death.

robrit61

I agree with what others are saying. The BT Pension Scheme is backed by the Crown Guarantee and BT are putting money in. I'd be a lot more concerned about the value of a SIPP taking a nose dive than I would be about being in the BTPS.
I guess whether this is right for you depends on your attitude to risk and what other pension provision you have. 

Fly100

Thanks all. Going to leave it with BT. Thanks again.