DB transfer very high multiple

RoadToRiches

Direbus said:

I just want to find an IFA thats not going to rip me off fee wise.

there was a quote on here sometime ago about greasing the hands of a banana republic guard in order to get your hands on your own money when it comes to DB pensions I’m afraid.

Albermarle

RoadToRiches said:

Direbus said:

I just want to find an IFA thats not going to rip me off fee wise.

there was a quote on here sometime ago about greasing the hands of a banana republic guard in order to get your hands on your own money when it comes to DB pensions I’m afraid.

To take a DB pension you do not need to grease the hands of anybody . You just ask the pension administrators to start paying it in line with the scheme rules . 

Albermarle

PinkPanda_3 said:

Hi

It would be worth investigating or getting guidance on the gmp element if you have not already. I also have a defined benefit cetv showing current  value of approx 2400pa with a cetv at 185k
Having spoken to an advisor there is a gmp calculation that is only done at nra which for me is in 4 years. It is not clear from the figures in the quote, but at that point an element is recalculated for the whole period since I left the scheme. I was told the payment then will be revised to 6400pa, but it does not show that or make it clear anywhere in my cetv documents. 

So your CETV seemed to be a multiple of 77 at first glance ( generally anything above 35X is pretty good ) but when all details came out it was less than 30X.
As you say it could well be why the OP has such an incredible multiple of 65X

Direbus

The 158000 is made up of value of benefits of 62k and GMP of 90k..
 No idea what makes up the balance of 7k..

But how do you find out the recalculated figure if it's not in the cetv..

If the pot value is 158k.  Is the 25%tax free based on that figure? 

kuratowski

25% tax free lump sum applies to Defined Contribution pensions, not Defined Benefit.

Depending on the rules of your Define Benefit scheme, you may or may not be entitled to a tax free pension commencement lump sum, but it's unlikely to be 25% of anything.

xylophone

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm063240

under

The applicable amount for an arising entitlement to a scheme pension under a defined benefits arrangement

kuratowski

To be clear, the tax manual defines the maximum amount you could possibly receive tax free (unless you have a protected amount), however the rules of the DB scheme will say how much you actually are entitled to.