Transfer DC Pension into Alpha Civil Service?

Silvertabby

That quote of £1,720 assumes that you won't retire/take your pension until SPA, and would be reduced for early payment if taken earlier.

It's still a good deal, though.

michaels

I am thinking of joining the cs for long enoiugh to transfer in some pension. What is the max you are allowed to teansfer in? 

NedS

michaels said:

I am thinking of joining the cs for long enoiugh to transfer in some pension. What is the max you are allowed to teansfer in? 

I'm not sure if there is a limit on transfers into the scheme.

There is a related limit to the amount of added pension you can purchase once in the scheme, which currently stands at £7300 of DB pension, which equates to a purchase price of around £93k for someone in their mid 50's (rises with age), so I wouldn't image you'd have an issue transferring in £100k

https://www.civilservicepensionscheme.org.uk/members/how-to-increase-your-pension/added-pension/added-pension-limits-and-deadlines/

How big is your DC pot that you wish to transfer in, and how old are you? I suspect you would probably need to wait until you start and then request a quote.

Diplodicus

michaels said:

I am thinking of joining the cs for long enoiugh to transfer in some pension. What is the max you are allowed to teansfer in? 

Enough to realise 50% of your current salary. 

michaels

Thanks both, 7.3k for 90k odd of DC would be good, 50% of salary at the same rate would be amazing.

Silvertabby

michaels said:

Thanks both, 7.3k for 90k odd of DC would be good, 50% of salary at the same rate would be amazing.

The transfer factors are age and (if like the LGPS) salary related, so may not be as simple as that.

When do you start your civil service job?  Note that this transfer in must take place within your first 12 months of membership, so get the ball rolling as soon as you can.

PeterC365

Wanted to resurrect this thread, I'm joining the CS and would have the opportunity to transfer in from my DC scheme.  
I'm coming in at a salary around £47k so assuming the 50% rule applies I could get £23.5k.

I'm currently 46 so using the added pension calculator, £1000 DB pension costs £11782 extrapolated out I reckon it would cost £275k to max out. 

Is my thinking correct and is this the proverbial no brainer I think it is.  My logic being £275k would only buy me about £12k based on a Joint Life / 50% annuity with 3% escalation.

hugheskevi

PeterC365 said:

Wanted to resurrect this thread, I'm joining the CS and would have the opportunity to transfer in from my DC scheme.  
I'm coming in at a salary around £47k so assuming the 50% rule applies I could get £23.5k.

I'm currently 46 so using the added pension calculator, £1000 DB pension costs £11782 extrapolated out I reckon it would cost £275k to max out. 

Is my thinking correct and is this the proverbial no brainer I think it is.  My logic being £275k would only buy me about £12k based on a Joint Life / 50% annuity with 3% escalation.

Remember to take into account real growth on investment between age 46 and 67/68 in your annuity comparator figure.

michaels

I think the default spousal benefit is only 1/3 for Alpha

However it has full CPI indexation so that is the annuity you need to compare against.

And as above you need to assume some sort of real terms growth for the money pot, somewhere between 2 and 5% is probably realistic; then you need to factor in that annuity rates are also variable. 

Once you do this returns are not that different but I still went for the transfer in as I value the certainty.  In the past (and maybe again in the future) it could also help with the LTA but obliviously at the expensive of inherit-ability.

PeterC365

hugheskevi said:

PeterC365 said:

Wanted to resurrect this thread, I'm joining the CS and would have the opportunity to transfer in from my DC scheme.  
I'm coming in at a salary around £47k so assuming the 50% rule applies I could get £23.5k.

I'm currently 46 so using the added pension calculator, £1000 DB pension costs £11782 extrapolated out I reckon it would cost £275k to max out. 

Is my thinking correct and is this the proverbial no brainer I think it is.  My logic being £275k would only buy me about £12k based on a Joint Life / 50% annuity with 3% escalation.

Remember to take into account real growth on investment between age 46 and 67/68 in your annuity comparator figure.

My thinking was after inflation and fees it’s probably a wash or 1-2% growth. I’m pretty vanilla global track invested.