Gmp pension transfer

dunstonh

Have you told your existing scheme you have GMP and a final salary underpin on the plan you want to transfer to them?

The £30k rule won't matter if the receiving scheme has a policy of not accepting any transfer with final salary underpins without advice.

xylophone

https://www.thepensionsregulator.gov.uk/en/document-library/regulatory-guidance/db-to-dc-transfers-and-conversions

I have been trying to contact administrator for over a month to find the current breakdown of the transfer value. I used to get these figures  for pre97 gmp, and post gmp .

With regard to regulated advice, it seems to me that you do need to obtain confirmation from The Trustees/Administrators of the Scheme as to whether they require you to obtain regulated advice before permitting a transfer out - see link above.

Even if they don't,  your SIPP administrator could still refuse to accept a transfer in. 

You appear to be describing a hybrid pension scheme of some type.

What does the scheme offer at Normal Scheme Pension Age?

mark55man

OP - sorry if this seems rude - for some reason you seem determined to transfer and resistant to the rules that have been put in place to stop/support people who are determined to transfer when it is not in their best interests.  Please feel free to ignore me - it wouldn't be the first time - but I think you need a rethink on this one and plot out  few scenarios over the next few years

mcn99

I have a thick skin, so please don't worry about upsetting me.

So from what I  have found is, I don't need advice to transfer but SIPP provider will not transfer a DC pension with any GMP rights, even though the safeguarded benefits are small. 

My rationale for wanting to move, was I just want one pot that I can manage, I know that I might be losing some money by moving, but its such a small size compared to my SIPP. 

I may look at other SIPP providers, or try for a partial transfer.

I'm planning on retiring in next few years so really want to sort this last pot out, getting advice on this small pot would not be viable.

mark55man

Thank you for taking the suggestion in such good spirit.  Given your SIPP seems large enough already, leaving the GMP to pay out could add some diversification to your portfolio and raise your core fixed income (ie State Pension + GMP) so that in a downturn you are not quite so pressured to sell SIPP when the market is low or recovering.  But you have clearly thought about it a lot - good luck with your plans 

dunstonh

So from what I  have found is, I don't need advice to transfer but SIPP provider will not transfer a DC pension with any GMP rights, even though the safeguarded benefits are small. 

You said it also had a final salary underpin.  So, its not just GMP.

My rationale for wanting to move, was I just want one pot that I can manage, I know that I might be losing some money by moving, but its such a small size compared to my SIPP. 

Is it really much more difficult to have this in the interim and use it to provide a secure income later? (meaning you can draw less on the SIPP)

xylophone

You said it also had a final salary underpin.  So, its not just GMP.

I have just read through all the OP's posts and I cannot see where he has stated this to be the case.

He has said

the last small pension. It has a gmp element. 

The last gmp underpin I saw was valued at 11k. 

I should have said this pension is a DC that has a gmp element. 

From what I can see from an old  2017 document. the total value of guaranteed benefits was only 10,200 (gmp under pin?), and this was all for GMP. If I look at HMRC pension estimate its calculating 18.50 per week for COPE. the GMP also has an on death 50% spouse element to it.

He has also stated 

So from what I  have found is, I don't need advice to transfer 

I assume that this has been confirmed by the Trustees/Administrator of this hybrid(?) pension scheme.

If so, they must be satisfied that the value of the safeguarded benefits is under £30,000?

https://www.thepensionsregulator.gov.uk/en/document-library/regulatory-guidance/db-to-dc-transfers-and-conversions

8. There is a ‘third type’[4] of benefits, where categorisation may be less obvious. This ‘third type’ could fall within the definition of both flexible benefits and safeguarded benefits. Where there is doubt about the status of benefits and how to treat them, trustees should treat this ‘third type’ of benefits as safeguarded benefits unless there is a good reason to treat them differently. Where trustees are unsure whether benefits within their scheme are clearly either flexible benefits or safeguarded benefits, we recommend that they take specialist legal advice to determine if they fall within this ‘third type’.

• [7] In general, the statutory right to transfer only applies when a member transfers the whole of each category of benefits – it is not generally possible to transfer only part of a category under the legislation. An exception is that, where a member has contracted-out rights (see footnote 11) and is transferring to a non-contracted-out occupational pension scheme or a personal pension scheme and those schemes are not willing to accept a transfer relating to the contracted-out rights, he can transfer only the relevant part of a category of benefits – in this case he would have a statutory right to transfer only the excess over the guaranteed minimum pension or the pension in respect of pensionable service before 6 April 1997 (see section 96(2)-(3) of the Pension Schemes Act 1993).

32. To protect members against the risks associated with a transfer the 2015 Act has introduced a requirement that trustees check that a member has obtained the appropriate independent advice before transferring the member’s safeguarded benefits to a DC scheme (or a DC section of the same scheme).

33. In respect of all requests for a transfer of safeguarded benefits to acquire flexible benefits received on or after 6 April 2015[16], trustees must, unless the exemption described in the paragraph below applies, check that the member has taken appropriate independent advice from an authorised independent adviser on the merits of the transfer.

dunstonh

I have just read through all the OP's posts and I cannot see where he has stated this to be the case.

I swear I saw it.  But you are right, it just mentions underpin.   I must be going nuts.  

xylophone

So from what I  have found is, I don't need advice to transfer but SIPP provider will not transfer a DC pension with any GMP rights, even though the safeguarded benefits are small. 

You mean that your current SIPP provider will not accept a transfer in of such a pension?

Your pension Trustees/Administrators have definitely confirmed that as far as they are concerned, regulated advice is not required?

Are you able to provide more details of the Scheme in question?

If the pension remains with the current Administrators until GMP age (65 for a male), what will be offered?

Will it be a choice of the better of the GMP pension or the value of the fund?

Or something else?

Do the Scheme Rules/the current Administrators permit a transfer out of non GMP funds while retaining the GMP?