Unable to transfer my DB pension - can anyone help?

semiplural

random129 said:

I am unable to work through ill health and receive ESA and PIP but an immediate pension would not solve what I need. I need funds to clear my debt, repair my property and pay for alternative treatments to ease the symptoms caused by my numerous health issues. I also want peace of mind that when I die any money left in my pension fund can go to my relatives. That will not be possible unless I transfer out of my DB pension because I am widowed and have no dependents.

If it is really going to be insurmountable to get your pension out into a SIPP. It might be worth checking with you Pension Fund Trustees :

Some schemes give you the chance to take a 25% Tax Free Lump Sum in exchange for a reduced ongoing pension, which may be some help.
Also additional beneficiaries I think are generally covered at the discretion of the Trustees, so it may be possible to nominate someone who is not a widow or dependent.

random129

semiplural said:

If it is really going to be insurmountable to get your pension out into a SIPP. It might be worth checking with you Pension Fund Trustees :

Some schemes give you the chance to take a 25% Tax Free Lump Sum in exchange for a reduced ongoing pension, which may be some help.
Also additional beneficiaries I think are generally covered at the discretion of the Trustees, so it may be possible to nominate someone who is not a widow or dependent.

My scheme only offers around 6% which is not enough. The scheme does allow additional beneficiaries at the discretion of Trustees but they only confirm if they are allowing it after death. I want the peace of mind before I die of knowing for certain I can pass any money on.

HappyHarry said:

If they signed the advice declaration form then they must have given you advice.

Advice has to be in a permanent form e.g. write  or emailed. Not verbal. Else how would a provider know if the advice was to transfer or retain the DB pension  if there is no written record of the advice?

The new rules make no difference to the above. 

Thanks I will look into that. They definitely did not give me their advice in writing. Maybe I can complain about them to the Ombudsman because of that? I don't want to have to complain about anyone, I just want to be able to exercise my statutory right to transfer but it's beginning to look like complaining about everyone is the only way I'm going to get even a slim chance of transferring. The whole industry is a joke!!

Marcon

semiplural said:

random129 said:

I am unable to work through ill health and receive ESA and PIP but an immediate pension would not solve what I need. I need funds to clear my debt, repair my property and pay for alternative treatments to ease the symptoms caused by my numerous health issues. I also want peace of mind that when I die any money left in my pension fund can go to my relatives. That will not be possible unless I transfer out of my DB pension because I am widowed and have no dependents.

If it is really going to be insurmountable to get your pension out into a SIPP. It might be worth checking with you Pension Fund Trustees :

Some schemes give you the chance to take a 25% Tax Free Lump Sum in exchange for a reduced ongoing pension, which may be some help.
Also additional beneficiaries I think are generally covered at the discretion of the Trustees, so it may be possible to nominate someone who is not a widow or dependent.

DC schemes provide a 25% tax free lump sum.

DB schemes offer a Pension Commencement Lump Sum, the maximum amount being the lower of HMRC maximum and whatever is provided in the scheme rules - you can exchange ('commute') part of your pension for tax free cash at the point of retirement. OP, 6% sounds quite low - might be worth double checking, unless you're sure that is the maximum you can take.

Extremely unlikely the Trustees will have the discretion to pay a pension to someone who is not a spouse/partner/eligible child. The discretion is usually only applicable in the case of unmarried partners 'living in a relationship akin to marriage'. 

Linton

random129 said:

semiplural said:

If it is really going to be insurmountable to get your pension out into a SIPP. It might be worth checking with you Pension Fund Trustees :

Some schemes give you the chance to take a 25% Tax Free Lump Sum in exchange for a reduced ongoing pension, which may be some help.
Also additional beneficiaries I think are generally covered at the discretion of the Trustees, so it may be possible to nominate someone who is not a widow or dependent.

My scheme only offers around 6% which is not enough. The scheme does allow additional beneficiaries at the discretion of Trustees but they only confirm if they are allowing it after death. I want the peace of mind before I die of knowing for certain I can pass any money on.

HappyHarry said:

If they signed the advice declaration form then they must have given you advice.

Advice has to be in a permanent form e.g. write  or emailed. Not verbal. Else how would a provider know if the advice was to transfer or retain the DB pension  if there is no written record of the advice?

The new rules make no difference to the above. 

Thanks I will look into that. They definitely did not give me their advice in writing. Maybe I can complain about them to the Ombudsman because of that? I don't want to have to complain about anyone, I just want to be able to exercise my statutory right to transfer but it's beginning to look like complaining about everyone is the only way I'm going to get even a slim chance of transferring. The whole industry is a joke!!

You can only complain to the ombudsman if you have been through the IFA's complaint process first.

Albermarle

OP, 6% sounds quite low - might be worth double checking, unless you're sure that is the maximum you can take.

How can it be 6% or any % as there is no pot of money for a DB scheme to calculate a % from ? It sounds like some misunderstanding.

Marcon

Albermarle said:

OP, 6% sounds quite low - might be worth double checking, unless you're sure that is the maximum you can take.

How can it be 6% or any % as there is no pot of money for a DB scheme to calculate a % from ? It sounds like some misunderstanding.

I was working on the assumption that OP meant 6% of the transfer value (dangerous things, assumptions!).

Albermarle

Marcon said:

Albermarle said:

OP, 6% sounds quite low - might be worth double checking, unless you're sure that is the maximum you can take.

How can it be 6% or any % as there is no pot of money for a DB scheme to calculate a % from ? It sounds like some misunderstanding.

I was working on the assumption that OP meant 6% of the transfer value (dangerous things, assumptions!).

Yes could be, but even then it seems very low ,

Marcon

Albermarle said:

Marcon said:

Albermarle said:

OP, 6% sounds quite low - might be worth double checking, unless you're sure that is the maximum you can take.

How can it be 6% or any % as there is no pot of money for a DB scheme to calculate a % from ? It sounds like some misunderstanding.

I was working on the assumption that OP meant 6% of the transfer value (dangerous things, assumptions!).

Yes could be, but even then it seems very low ,

Completely agree. If the pension is being taken early and a large part of it comes from Guaranteed Minimum Pension benefits, that might explain it - but I think it bears checking with the scheme.

xylophone

What have you been quoted for an early pension with actuarial reduction/ an early pension on grounds of ill health?

What would the commutation factor be?

bluenose1

Albermarle said:

OP, 6% sounds quite low - might be worth double checking, unless you're sure that is the maximum you can take.

How can it be 6% or any % as there is no pot of money for a DB scheme to calculate a % from ? It sounds like some misunderstanding.

I think this refers to the maximum tax free lump sum for commutation purposes. 

If DB pension is £10k per annum with a lump sum of £30,000.
HMRC rules allow us to increase tax  free lump sum to (20 x £10,000 + 3 x £10,000)/ 25% = £57,500.
therefore could get an additional £27,500 tax free lump sum. 

For one of my DB pensions the Commutation rate is 12:1 so won’t be taking the maximum. One of them is currently 27:1 so if was going to do any it would be this one. Will see what the next 5 year holds before I decide anything.